| If you were to look at many large corporations | | | | time.As you can see, outsourcing overseas is a |
| such as Sprint, Dell, and so on, you would find a | | | | huge dilemma, with growing concern. When you |
| number of jobs are outsourced overseas. | | | | consider the growing positions being outsourced, |
| Outsourcing is nothing new but the trend of global | | | | the concern rises. Although you might generally |
| outsourcing has ignited a firestorm of | | | | think of customer support as being the number |
| controversy.North American businesses are | | | | one outsourced job, you might be surprised. |
| increasingly outsourcing business functions to | | | | Below is a list of other jobs that are often |
| companies outside of the United States. Often | | | | outsourced:- Customer Service - Although this |
| this outsourcing is seamless to the outside world. | | | | was not one of the original aspects of a business |
| The company maintains control over the | | | | outsourced, we now see a huge number of |
| processes and results, while certain business | | | | companies, small to large, using overseas services |
| functions are quietly conducted in another country. | | | | in all areas of customer support.- Data Analysis - |
| Companies often benefit from reduced operating | | | | The amount of data being generated by |
| costs and an eager workforce. For the | | | | companies throughout the United States is |
| employees, particularly those in struggling | | | | staggering. In most cases, conducting market |
| economies, they are afforded higher wages and | | | | analysis and reviewing trends is crucial to a |
| an increased standard of living.While this may | | | | number of industries. For instance, much of the |
| seem to be a win-win proposition for all, it does | | | | data coming out of the New York Stock |
| not come without its share of naysayers who | | | | Exchange is sent to India where it goes through a |
| believe that this practice is further eroding the | | | | complete analysis process.- Research - Research |
| already shaky North American economy. To | | | | is also another large area where overseas |
| understand this controversy, we must look at | | | | outsourcing is used. In this case, companies will |
| why companies decide to outsource as well as | | | | outsource large or portions of large research |
| the type of jobs being outsourced. Companies | | | | projects to people in other countries, which |
| cite a variety of reasons for outsourcing from | | | | covers everything imaginable such as |
| lack of qualified, available labor to cost concerns. | | | | pharmaceutical trials to genetics to nano stocks.- |
| Unfortunately, while many people in the United | | | | Engineering Design - More and more, we see |
| States want to work and some actively seek | | | | engineering design being outsourced. Typically, |
| positions, sometimes these individuals are not | | | | companies in the United States establish what is |
| qualified or unreliable. To the company, this | | | | known as an Offshore Development Center or |
| creates a risk of missed deadlines, understaffing | | | | ODC, which includes a number of design fields |
| and its inherent consequences, under production, | | | | such as architectural, mechanical, hardware, |
| and so on.Cost and competition raise another | | | | structural, and product.- Medicare - Many people |
| issue. Businesses around the country are vying | | | | are unaware that Medicare is also outsourced to |
| for ways to reduce cost while increasing | | | | foreign countries. Services provided by employees |
| effectiveness and productivity. By using overseas | | | | could include data entry of doctor's transcripts to |
| outsourcing, companies are able to save on one | | | | interpretation of an MRI, CAT scan, or other |
| of the largest line item expenses in business - | | | | medical imaging processes.- Art and Animation - |
| human capital. Consider alone the skyrocketing | | | | With different countries offering unique levels and |
| cost of healthcare in the United States. Businesses | | | | genres of creativity, a company needing a |
| can spend an additional $8000 - 10,000 per | | | | website, illustrations, artwork, book cover design, |
| employee, per year on benefits alone. When | | | | television show, graphic art, and other similar |
| added to salaries, workers compensation, and | | | | functions would turn to other countries for fresh |
| operational expenses it is easy to see why global | | | | ideas- Legal - Finally, we also see legal support |
| outsourcing becomes an option.Global outsourcing | | | | services being outsourced overseas. Although |
| can also offer competitive advantages. Companies | | | | professional services would not be included, we do |
| can take advantage of specialized knowledge and | | | | see some of the more low-level tasks such as |
| emerging technologies by outsourcing certain | | | | data entry of legal documents or transcripts and |
| processes to other countries. In this way a | | | | patent searches being performed.Although |
| company can hire those leading an industry and | | | | outsourcing to other countries has been done |
| leverage that competitive advantage in the | | | | since the early part of the 1990s, it has become |
| marketplace.The underlying discontent with global | | | | a multi-billion dollar business for other countries. |
| outsourcing has to do with wages. In example, | | | | Although many of the workers are low skilled, |
| outsourcing to countries such as India and Mexico | | | | they are again, eager and willing to work. The |
| enables companies to pay much lower wages | | | | trend of outsourcing will likely to continue to |
| than they would pay North American workers. | | | | expand. We often view the negative impact to |
| With an abundance of people in foreign countries | | | | North American workers but the reality is we too |
| interested in making higher North American | | | | benefit from outsourcing.Many small businesses |
| wages, finding help is never a problem. For | | | | provide services to other countries. Writers, web |
| instance, a telecommunications company pays a | | | | developers, marketing consultants and many |
| customer service representative in the United | | | | others build a business that is largely global. These |
| States between $20,000 and $30,000 per year | | | | small businesses are often started by laid off or |
| on average. If the company were to turn the | | | | out placed corporate employees. Other countries |
| same job over to someone in another country, | | | | outsource to the United States for the same |
| they would likely pay between $10,000 and | | | | reasons we do - specialized knowledge, lower |
| $15,000. For the foreign worker this salary | | | | costs, and qualified labor. Let's face it the world |
| enables them to significantly raise their standard | | | | has changed. The debate over outsourcing is |
| of living while the same salary would be at the | | | | unlikely to subside any time soon, but the rules will |
| poverty level for North Americans. For the | | | | continue to be written.Richard A. Hall is founder |
| company and the overseas worker it is a win-win | | | | and President/CEO of LexTech, Inc., a legal |
| situation. However, this also means workers in the | | | | information consulting company. Mr. Hall has a |
| United States are being forced out of or passed | | | | unique breadth of experience which has enabled |
| over for jobs - thus the controversy.American | | | | him to meld technology and sophisticated |
| Express was one of the first companies to | | | | statistical analysis to produce a technology driven |
| publicly come under fire for global outsourcing. Dell | | | | analytical model of the practice of law. As a busy |
| too has come under attack for basing customer | | | | civil trial attorney, he was responsible for the |
| service in India. United States customers complain | | | | design and implementation of a LAN based |
| about the language barrier and lack of service but | | | | litigation database and fully automated document |
| neither company has suffered the loss of profits | | | | production system for a mid-sized civil defense |
| as a result of outsourcing.From the viewpoint of | | | | firm. He developed a task based billing model built |
| the overseas' employee, they simply want to | | | | on extensive statistical analysis of hundreds of |
| make a decent living. With jobs difficult to find in | | | | litigated civil matters. In 1994, Mr. Hall invented |
| their own country, accepting an outsourced job is | | | | linguistic modeling software which automatically |
| a gift from Heaven. These people often make | | | | reads, applies budget codes, budget codes and |
| 100% or more of what they could make in their | | | | analyzes legal bill content. He also served as |
| own country, which makes outsourcing highly | | | | California Director and lecturer for a nationwide |
| profitable and very attractive. Obviously, with so | | | | bar review. Mr. Hall continues to practice law and |
| much at stake, the outsourced workers are willing | | | | perform pro bono services for several Northern |
| to be trained, to follow rules to the tee, to | | | | California judicial districts. |
| respect authority, and be to work on time, every | | | | |