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The Real Price of Outsourcing: An Analysis

Exporting work to other countries, called ?outsourcing? is the latest trend in business to reduce labor costs and maximize profits, and expedite the development of new products.

The outsourcing of high wage jobs from the United States to lower cost overseas locations is currently contributing to unprecedented levels of unemployment among American electrical, electronics and computer engineers. Offshoring also poses a very serious, long term challenge to the nation's leadership in technology and innovation, its economic prosperity, and its military and homeland security.

The main advantages of outsourcing are clear. Firstly, it allows a business to fix the price of supporting its IT, and secondly it alleviates the requirement to employ and maintain large bodies of IT support staff in house. Infant business use outsourcing as a way to cut costs and increase efficiency.

Outsourcing isn?t a new concept. The US textile industry began in New England, but following the Civil War, manufacturers moved production to the Carolinas because of cheaper labour costs. After World War I, textile manufacturing moved yet again, this time to countries such as Brazil and China.

IT outsourcing is becoming increasingly popular. Th

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Approximate Word count = 1616
Approximate Pages = 6 (250 words per page double spaced)

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