Information Technology Offshoring Outsourcing: A Perspective kof Advanced Countries

Information Technology Offshoring Outsourcing: A Perspective kof Advanced Countries

Smita Gupta (Technology Partners, Inc., USA) and Narendra S. Chaudhari (Nanyang Technological University, Singapore)
DOI: 10.4018/978-1-59140-875-8.ch006
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Abstract

Offshore outsourcing is a term covering a range of information technology (IT) and business services delivered to companies in developed countries by IT personnel based in developing countries. The significant cost savings achieved by the offshore model is the prime factor in its growing acceptance and use. IT software and service outsourcing is becoming a new reality for employers, employees, government and academicians. The widespread use of Internet, standardization of software development methodologies, efficient IT project management techniques, low cost of telecommunications, have provided the necessary thrust for global production of software and services. In this chapter, we analyze the impact of today’s offshore outsourcing movement to the United States economy, education, jobs, wages, and social issues. We suggest that offshoring is a viable economic model. It leads to improved productivity, lower inflation and eventually growth in jobs and wages. The U.S. will also see significant numbers of “in-sourced” jobs because of subsidiaries of foreign based companies. Future job growth in different areas of business and skills, require young students and present IT workforce to acquire them with education and training. Federal Reserve chairman Alan Greenspan has also expressed the need to produce highly skilled workers. The loss of jobs of IT workers is the difficult aspect of offshoring. Laid-off workers should be provided assistance to find a new comparable job, both by the U.S. government and companies. In this chapter, we make some recommendations to reduce, minimize and overcome the hardships caused by the IT outsourcing.

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Dedication
Harbhajan Kehal, Varinder Singh
Table of Contents
Acknowledgments
Chapter 1
Glauco De Vita, Catherine L. Wang
This chapter tracks the evolution of outsourcing theory and practice in order to develop a taxonomy of outsourcing generations. Our taxonomy... Sample PDF
Development of Outsourcing Theory and Practice: A Taxonomy of Outsourcing Generations
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Chapter 2
Subrata Chakrabarty
Many terminologies have grown out of the outsourcing and offshoring bandwagon. While the corporate world continues to experience these phenomena... Sample PDF
Making Sense of the Sourcing and Shoring Maze: Various Outsourcing and Offshoring Activities
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Chapter 3
Ashima Goyal
This chapter shows that ICTs make possible a more inclusive global trade, since now labour intensive components of production can be unbundled and... Sample PDF
Global Sourcing: East-West Divide or Synthesis?
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Chapter 4
Parthasarathi Banerjee
This chapter investigates conditions when economic profit can be made from outsourcing. In order to have profit a firm must pursue strategies of... Sample PDF
Strategies of Outsourcing: From De-Risking to Uncertainty
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Chapter 5
Fjodor Ruzic
In today’s dynamic e-business environment where fast time to market is imperative, where information and telecommunications technology is costly and... Sample PDF
New Ethics for E-Business Offshore Outsourcing
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Chapter 6
Smita Gupta, Narendra S. Chaudhari
Offshore outsourcing is a term covering a range of information technology (IT) and business services delivered to companies in developed countries... Sample PDF
Information Technology Offshoring Outsourcing: A Perspective kof Advanced Countries
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Chapter 7
Jurgis Samulevicius, Val Samonis
A major phenomenon of globalization, outsourcing is a complex and controversial issue. It occurs when companies contract out activities previously... Sample PDF
Business Process Outsourcing to Emerging Markets: A Knowledge Management Approach to Models and Strategies
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Chapter 8
Luke Ho, Anthony S. Atkins
In recent years, outsourcing deals have increased in number and the strategic importance of the decision-making process has correspondingly... Sample PDF
Outsourcing Decision-Making: A Review of Strategic Frameworksand Proposal of a Multi-Perspective Approach
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Chapter 9
Alev M. Efendioglu
Recently, outsourcing/offshoring has gained significant exposure in the popular as well as academic publications, with authors arguing the many... Sample PDF
Outsourcing and Offshoring: Issues and Impacts on Venture Capital
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Chapter 10
Siri Terjesen
This chapter reviews the outsourcing and offshoring of finance activities and the socioeconomic implications for home and host countries. Part one... Sample PDF
Outsourcing and Offshoring Finance Activities
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Chapter 11
Kirk St. Amant
This chapter examines the role of open source software (OSS) in international outsourcing practices that involve the transfer of knowledge work from... Sample PDF
Open Source and Outsourcing: A Perspective on Software Use and Professional Practices Related to International Outsourcing Activities
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Chapter 12
Subrata Chakrabarty
The primary purpose of this chapter is to present descriptive real-life case studies of different offshore-outsourced custom software development... Sample PDF
Real Life Case Studies of Offshore Outsourced IS Projects: Analysis of Issues and Socio-Economic Paradigms
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Chapter 13
Varadharajan Sridhar, Sangeeta S. Bharadwaj
IT-enabled services (ITES) in India have registered tremendous growth in recent years. Availability of English speaking trained manpower and low... Sample PDF
Growth of Outsourced IT-Enabled Services in India: A Systems Dynamics Approach
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Chapter 14
Nicholas B. Beaumont
This chapter notes and explains the increasing use of outsourcing and service level agreements (SLAs); proposes and describes an outsourcing... Sample PDF
An Overview of Service Level Agreements
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Chapter 15
Piyush Sharma, Rajiv Mathur, Abhinav Dhawan
Offshore outsourcing is a fast-growing aspect of the world economy today and it has drawn attention from policy makers as well as public at large in... Sample PDF
Understanding Consumer Reactions to Offshore Outsourcing of Customer Services
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Chapter 16
Michael Amberg, Martin Wiener
Increasing competition in globalized markets drives IT offshoring worldwide. In the United States, the relocation of IT activities and processes to... Sample PDF
IT Offshoring: A German Perspective
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Chapter 17
Felix R. Doldán Tie, Paula Luna Huertas, Francisco Jose Martínez Lopez, Carlos Piñeiro Sanchez
The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the... Sample PDF
Information Systems/Information Technology Outsourcing in Spain: A Critical Empirical Analysis
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Chapter 18
Arjun K. Paiu, Subhajit Basu
The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the... Sample PDF
Emerging Legal Challenges in Offshore Outsourcing of IT-Enabled Services
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Chapter 19
A. Hoecst, P. Trott
In this chapter we argue that firms have responded to the intense pressure from markets and financial operators to reduce asset investments by... Sample PDF
Does Strategic Outsourcing Undermine the Innovative Capability of Organizations?
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Chapter 20
Anne C. Rouse, Brian J. Corbitt
Much of the research that has been carried out into outsourcing is based on relatively successful case studies. Yet drawing inferences from case... Sample PDF
Analysis of a Large-Scale IT Outsourcing "Failure": What Lessons Can We Learn?
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About the Authors