The advancement of information technology has spurred many high tech corporations and start up companies within the last few decades. The advent of the internet opened the world to online business technology and commerce while simultaneously fueling globalization. Private companies began to appear on the internet in the nineties, contributing to the expansion of their businesses and services on the world market. The late nineties brought the dot com boom to the forefront with internet companies prospering and expanding their operations. The burst of 2000 essentially ended the boom and soured the economy, particularly in the technology sector. As time passed, companies recognized the need to cut operating costs, reduce personnel and save their resources. Hence, outsourcing came to the forefront as a way to stay competitive. Developing nations like India and China have come to light in recent years as they have a wealth of computer engineers and programmers who will work for low wages. Outsourcing has become such a common practice that it is now considered a benefit to the world economy “We know that outsourcing is a $400 billion a year industry and IT outsourcing is a vital part of the industry. A slump in IT outsourcing would mean a loss for the global economy.” (Ghimire) The world must accept that outsourcing is a major staple to the world economy.
However, with every step forward, come two steps back. Companies continue to outsource jobs overseas, leaving thousands jobless in the United States. Companies have emphasized costs cutting and profits... [continues]
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(2008, 07). Social Effects of Outsourcing. StudyMode.com. Retrieved 07, 2008, from http://www.studymode.com/essays/Social-Effects-Outsourcing-156212.html
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