Outsourcing Research Paper

Outsourcing Research Paper-11
In recent years, in addition to the overall growth in volume of outsourcing, new models of outsourcing have evolved.These models are the result of the rapid advances in telecommunication and information technologies and the growing comfort with outsourcing among industry executives.

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Firms in the United States or the United Kingdom usually gain from the lower wages in the LCCs, which are 40% to 60% below the prevailing rates in the United States and the United Kingdom.

Firms evaluate outsourcing to determine if the current operating costs can be reduced and if saved resources can be reinvested in more competitive processes.

Given the leadership position that India has attained the area of IT outsourcing, the discussion in this research-paper will largely focus on IT outsourcing.

IT has become an integral part of modern organizations today. From a rudimentary base in the 1970s, the global spending on software services alone (which does not include packaged products) exceeds $350 billion today.

Some are summarized here: Though organizations initially outsourced only what can be considered support (noncore) activities, the scope of activities has now significantly expanded to include what can be considered core activities as well.

This paper is structured in eight broad sections dealing with the following topics: different types of outsourcing, outsourcing of information technology (IT) and related services, IT outsourcing to India, advantages of outsourcing to India, evolution of outsourcing to India, trends in Indian IT off-shoring, and outsourcing to India in non-IT-related areas.

Outsourcing of activities can range from the most basic to the most complex.

For example, an industrial manufacturing firm may provide transportation facilities to its employees to reach the office from their residence and back.

Today outsourcing is widely practiced in all forms of organizations including corporations, governments, charities, and religious institutions.

Simply put, outsourcing is a contractual agreement between the client (the organization that does the outsourcing) and one or more external suppliers (vendors) to provide services or processes currently provided by the clients’ internal organization.


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