Outsourcing of IT Jobs essays

Outsourcing of IT Jobs essays Companies are under increasing pressure to compete in their marketplaces, thus they are looking at cheaper sources of labor outside of the United States to help cut costs. IBM has become one of the leading companies to follow this business strategy. However, organizations and management must now deal with new problems such as clashes of culture, customs, language, and even political pressure. Outsourcing is the newest trend that Corporate America is using to cut its costs. They are moving U.S. jobs overseas where the labor expenses are cheaper. The outsourcing of America is shaping up as a seemingly inexorable trend, with various consultants estimating that the number of U.S. jobs shipped overseas will climb from the hundreds of thousands we have seen over the last few years to several million in 10 years. (Gumpert, 2004 p.1). Corporations such as IBM, Dell, Microsoft, and American Express have participated in this strategy to cut costs. However, all of these companies will need to learn how to deal with the implications of moving to a cheaper labor force. Why are companies outsourcing many IT jobs? Large American corporations are claiming that they are outsourcing U.S. jobs overseas not only to cut their costs, but so that they can more efficiently compete in the global economy. Also many smaller companies are beginning to take the plunge and send jobs overseas so that they can compete with the larger corporations. Many of our U.S. jobs are being shipped offshore to countries such as India, China, Russia, and the Philippines. Jobs are being transferred to these locations because the countries have a high number of educated and highly skilled, information technology professionals. Programmers and engineers in these countries are willing to work for a much cheaper rate. With this new trend many Americans are wondering if the foreign workers actually possess the skills necessary to do the job. It is a surp...