Outsourcing of America Essay - 3200 Words

Outsourcing of America In an increasingly globalize society, it is nothing new to hear about product development and assembly going abroad. Factory jobs have been moved to other nations for decades, and more recently, customer call centers are being relocated to foreign nations. With the current downturn in the economy, people are looking to at this situation in an increasingly negative way. Not all work that moved abroad ended in satisfaction, yet the trend appears to be spreading to new jobs and industries. With the growing population of college educated in foreign nations, software development jobs are shipping overseas. With many incentives associated with outsourcing to various countries versus keeping jobs in the country,†¦show more content†¦The end result of the component outsourcing should yield reusable components. The next type of outsourcing required that the customer organization simply contracts for an external group to perform all or part of the functions of one or more of their pro cess steps. Process component outsourcing means that requirement development, design phase, coding phase, test phase, or the maintenance phase is outsourced to another location. Most commonly the testing phase of the software development process is shipping out of house. Finally there is Software Acquisition, where all software development is sent to another location company. Outsourced work can be sent to another company and/or another country. In this paper, we will concentrate on work that is outsourced to another country. This may mean the company creates and staffs an office abroad, or hire an international outsourcing firm. Which ever way companies decide to outsource the work the motivation behind the strategy is the same.[2] There are many perceived advantages to outsourcing software development work to other locations. The first of these advantages is cost. When outsourcing work to foreign nations, a company can save a great deal of money since the dollar goes further in other nations, therefore software developers can be paid less. Even when outsourcing to local companies aShow MoreRelatedThe Effects of Outsourcing in America Essay1299 Words   |  6 PagesThis quote by Adam Smith, cited by Timothy Taylor, defines outsourcing as a task that can be done within a group, but is instead done by a third-party group for less money. While outsourcing service benefits American firms, studies show it takes jobs from middle-class Americans and adversely affects the American economy; however, other research proposes that outsourcing might actually benefit the American economy. 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