various aspects of outsourcing the IT function from an organization

Personnel Outsourcing

What do Microsoft Corporation , Marks Spencer and Mambo Graphics have in common ? One thing that made them related with each other is that they were known in their own fields and achieved more than what they expected . This , they owe to the power of outsourcing . They did not rely on the skills and capabilities of their employees internally . They took time to explore new possibilities how to be more competitive with the market . They learned that outsourcing can be a very good tool in achieving one 's goal

Highly

skilled operators , programmers , agents for a specific insurance company , or even call center agents are hired to provide a certain function that cannot be provided within the country or the state

Lever (1997 ) defined outsourcing as a contracted services outside a company or even outside the country to do a specific job or function Outsourcing or contracting out work started in the manufacturing business in the early 1980s , primarily as a means of cutting back staff and saving on wages (Ryans , 1996 . They are commonly called the third-party providers or simply service providers

There are many reasons why outsourcing or contracting out work is more rather than developing in-house talents . First , it is seen as more cost-effective (Domberger , 1998 http /www .questia .com /PM .qst )-for example , a contracted personnel from other countries require only smaller salary because of the certain standardized salary scheme within the country second , to cut cost and refocus resources (Holt , Kennedy , Rehg Ward , 2002 . A large company with numerous personnel with no specific work is the same with a company with smaller personnel but with specified work . This was done through outsourcing of different functions from different sources . And third lower investment in internal infrastructure (Reaser , 1996 , it will be built instead to the outsourced country

In India , the volume of work outsourced has increased to more than 50 percent since 2005 (Ahmed , 2006 , BBC news . Skilled professionals of IT and call center jobs are growing in India . When outsourcing from other countries started , India has been one of the countries most favored for this aim

While some commended outsourcing is the best option to be more competitive in the market , some are anxious with what will be the result of all these in the workforce especially in the US . Other than India China , Japan and the UK are also now outsourcing some of their workforce

As of October 2006 , the Bureau of Labor Statistics reported that the US population continues to grow at 300 ,263 ,379 . Although employment grew by 92 ,000 in October , the workforce is still apprehensive with might happen if companies continue to outsource personnel

The Hira brothers 's book cites a University of California Study that estimates 14 million U .S . white collar jobs - one in nine - are at risk A 2004 report by Forrester research suggests that a US white collar jobs will move overseas by 2015 , with 830 ,000 jobs leaving by the end of 2005...