GLOBALIZATION & OUTSOURCING

Globalization and Outsourcing

ABSTRACT

This paper highlights one of the most prevailing trends in today's business environment i.e. outsourcing. The paper starts with the introduction of globalization and than its relationship to the outsourcing in business. In addition, the paper depicts about the reasons for outsourcing in today's business environment. Afterwards, the paper highlights the negative impacts of outsourcing in a general manner and more specifically it tells that how the global outsourcing is affecting the United States.The paper concludes with the ending notes on the topic in a brief manner.

Globalization and Outsourcing

The Phenomenon of Globalization

The word "globalization" apparently coined in 1944 and used by economists since 1981, but it is only by 90 years it has become part of common language. Various scholars have tried to show the continuity between contemporary trends of globalization and earlier periods. The first era of globalization (in the fullest sense) was during the nineteenth century thanks to the rapid growth of international trade between the European imperial powers, the European colonies and the United States of America. After World War II, globalization, restarted and driven by major advances in technology that have led to a generalized lowering of trade costs (Tilley & Kate, 1999).

Outsourcing

The outsourcing increasingly applied in companies globally, and that external support from a specialist company normally generates positive rates in our organization. However, we must take into account certain points so that this process is unfavorable to our company. The process of outsourcing begins with hiring an outside company to remedy or manage an important area of our business that we are not able to handle. This is a normal process, since no person can fully manage the different areas of a company and staffs training costs are often very high and time consuming (Hendry, 1995).

Individuals and corporations that can drive more profitable areas of our company achieves a more effective and efficient performance. However, this can backfire, if it becomes habitual in the way we do business. While still a relatively young discipline Crowdsourcing the outsourcing of tasks to individuals usually describe, evaluate the problems solved in their spare time, and the classic outsourcing aimed at the permanent award of contracts to external companies, and service providers.

Global Outsourcing and Its Consequences

Outsourcing or supply is a novel drift amongst firms that works and eases operations outside the U.S. These firms employ outsourcing as a way to reduce expenses and using cheap outsourced to overseas firms or to set up franchises in the overseas nations (Tilley & Kate, 1999). This takes away much required jobs in the United States financial system. The choice to outsource often made in the interest to reduce the cost of doing business, redirecting or protection of energy directed at the competencies of a business or make more well-organized utilization of labor, capital, expertise, and capital. Industries normally outsourced consist of I.T, H.R, facilities and property management and accounting. The majority of firms also customer support and outsource call center functions like telemarketing, client services, marketing research, ...