13,188 research outputs found

    IT OFFSHORING: History, Prospects and Challenges

    Get PDF
    Offshore provision of IS/IT related services has been growing rapidly in recent years and seems firmly set to continue. This trend is fueled by the many advantages of offshore service procurement; however, there are dangers in this practice. Furthermore, offshoring requires adaptation of the IS function and IS management. This, in turn suggests the need for modifications of IS curricula in order to prepare graduates for the new environment. The advantages of offshoring are those of outsourcing in general – cost saving and allowing the organization to focus on its core activities. The main dangers include loss of possibly-important business skills and reliance on remote suppliers who face risks that are unfamiliar to the client firm. The loss of jobs due to offshoring also introduces political considerations. Offshore IS activities are generally the responsibility of an organization’s CIO. This management responsibility requires awareness of cultural and legal differences and of risks associated with offshoring and outsourcing in general. Offshoring has an effect on job opportunities for graduates of information systems programs. The number of some jobs will shrink, but new positions with new responsibilities are likely to emerge. Training of students in the U.S. and other countries in the developed world to function in an environment of offshored operations will introduce new IS roles and skills and require the adaptations of IS curricula

    Offshoring of Business Services and its Impact on the UK Economy

    Get PDF

    A New International Division of Labor in Europe: Offshoring and Outsourcing to Eastern Europe

    Get PDF
    Europe is reorganizing its international value chain. I document these changes in Europe’s international organization of production with new survey data of Austrian and German firms investing in Eastern Europe. I show estimates of the share of intra-firm trade between Austria and Germany on the one hand and Eastern Europe on the other. Furthermore, I present empirical evidence of the drivers of the new division of labor in Europe. I find among other things that falling trade costs and falling corruption levels as well as improvements in the contracting environment in Eastern Europe are affecting the level of intra-firm imports from Eastern Europe. They are also favoring outsourcing over offshoring. Low organizational costs of hierarchies and large costs of hold-up (when there are no alternative investors in Old Europe or no alternative suppliers in Eastern Europe) are favoring offshoring over outsourcing. Tax holidays granted by host countries in Eastern Europe also mildly affect the organizational choice

    Sending Jobs Overseas: The Cost to America’s Economy and Working Families

    Get PDF
    [Excerpt] This report was created by Working America and the AFL-CIO as a companion piece to Work­ing America’s Job Tracker, a ZIP code –searchable database of jobs exported (as well as Occupational Safety and Health Act violations and other work­place issues). Users can search their area for com­panies that have sent jobs overseas. Though Job Tracker is one of the largest publicly available, fully searchable records of the extent and specifics of outsourcing, it only reveals the tip of the iceberg. This report and Job Tracker contextualize each other—Job Tracker by mapping specific job losses due to outsourcing, the report by taking a broad view of the national-level numbers that are avail­able and offering case studies of key industries

    How Offshore Outsourcing is Perceived: Why Do Some Consumers Feel More Threatened?

    Get PDF
    As globalization intensifies, multinational companies are not only compelled to expand their operations, but are also facing greater pressure to enhance productivity and concomitant return on investment (ROI). One way to achieve cost efficiencies is by offshoring selected business operations to overseas firms. Such offshoring, however, has generated public concern and, in some cases, outrage. Angst against offshoring is based on many perceptions, including perceived job losses and damage to domestic industries. In the wake of this threat, multinational firms in Europe and North America confront a public relations problem in justifying their offshoring activities. Yet, no systematic study has investigated why some consumers feel threatened by offshoring while others do not. Our study addresses this concern by using Americans as a sample. We show that economic threat and consumer ethnocentrism have a negative impact on offshoring attitudes while perceived quality of services delivered by offshore firms has a positive effect. Implications are discussed

    The offshoring of financial services : a reassessment

    Get PDF
    Operating in increasingly competitive market environment, financial services companies are engaged in international re-engineering of business processes mirroring developments in manufacturing over the past four decades. Drawing upon interviews conducted with senior managers and partners from two leading international banks, a multinational 'consumables' provider and a leading finance consultancy, as well as extensive published surveys, we examine the distinctive 'anatomy' of offshoring in financial services, and industry which also manifests a high degree of geographical concentration for 'higher order' functions. We conclude that the reality of process re-engineering in the sector has frequently failed to meet business objectives, and has run the risk of creating 'backlash' from employees in both home and host environments

    IWS Issue Brief - Where in the World Is Your Job Going?

    Get PDF
    Let\u27s say you have a job processing credit card receipts, answering calls to a customer hotline, reading X-rays, or writing software code. Then one day the boss announces the facility is closing and you, along with all your co-workers, will be laid off. Shortly after, you learn from a news report in the local paper that workers in India are now performing the tasks that used to be handled in your office. In the article the company explained its decision to “offshore” jobs by noting the sizeable gap between the wages earned by its former employees in America and those earned by workers in that far away country

    Technology in work organisations

    Get PDF

    Everywhere and nowhere: Nearshore software development in the context of globalisation

    Get PDF
    Offshore software outsourcing, a major contributor to globally distributed work (GDW), has been identified as one of the most striking manifestations of contemporary globalisation. In particular, offshoring resonates with influential views that suggest that ICTs have rendered location irrelevant. Some research, however, has questioned this “placeless logic” and suggested that location may be significant to the success of offshoring ventures. In this paper, we draw on evidence from two nearshore software development ventures in the Caribbean to identify a number of locational characteristics relating to the physical, economic and cultural setting, local resources and government policy that may be important in influencing the suitability of offshore outsourcing venues. Some of these are recognised, even by companies pursuing placeless location strategies, while others were unanticipated. The cases also suggest that companies may be able to actively shape certain characteristics to their advantage. Implications for vendors and clients of nearshore information services, and potentially also for companies considering offshore ventures in non-traditional locations, are identified

    Offshoring and the onshore composition of tasks and skills

    Get PDF
    We analyze the relationship between offshoring and the onshore workforce composition in German multinational enterprises (MNEs), using plant data that allow us to discern tasks, occupations, and workforce skills. Offshoring is associated with a statistically significant shift towards more non-routine and more interactive tasks, and with a shift towards highly educated workers. The shift towards highly educated workers is in excess of what is implied by changes in either the task or the occupational composition. Offshoring to low-income countries—with the exception of Central and Eastern European countries—is associated with stronger onshore responses. We find offshoring to predict between 10 and 15 percent of observed changes in wage-bill shares of highly educated workers and measures of non-routine and interactive tasks
    corecore