When Does Organization Need to Implement Outsourcing Or Insourcing Strategy

Download or read book When Does Organization Need to Implement Outsourcing Or Insourcing Strategy written by Johnny Ch LOK and published by . This book was released on 2019-12-11 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: On the other side, outsourcing can bring this question: Whether the offshore outsourcing of information technology jobs choice is suitable to any IT organizations? Nowadays. The offshore outsourcing if IT jobs from the United States has been enabled by a powerful influence of global economic demographic and technological forces. In fact, many IT companies were drawn to offshoring outsourcing because of the need for programmers to fix the Y2K problem in the late 1990- year. It is shortages of US programmers. Other factors driving this phenomenon include the wage gap between the US and developing countries, e.g. China and India, advances in technology, labor availability, expanding foreign markets and foreign government incentives. The spread of the offshoring phenomenon from low skill manufacturing to high wage white collar service industry jobs reduces the country's IT jobs critics, it represents the mobility for many US workers who saw post-secondary education as the route to a higher standard of living. The offshoring outsourcing of manufacturing and service jobs from the US to lower cost foreign nations become a national issue in a very short time. The impact of offshore outsource on the information technology sector gives outsourcing potential loss of millions of jobs at all wage levels and the critical contribution is the IT sector to US productivity growth. However, decisions about the locations of manufacturing or service facilities reflect market forces key factors include the size of local markets, capital availability and costs, labor availability skill levels and cost, logistic issues, reliability and infrastructure and IT in particular relationships with research institutions. All these factors will influence the choice of offshore outsource IT jobs strategy top any organizations.