Outsourcing and the Glaobal Economy

Outsourcing and the Glaobal Economy

Outsourcing is defined as the management of an entire business function by a third party service provider. Outsourcing involve transferring a significant amount of management control to the supplier. Outsourcing always involves a considerable degree of two-way information exchange, co-ordination, and trust. Many companies look to employ expert organizations in the areas targeted for outsourcing. Business segments typically outsourced include Information Technology, software devolopment, web design and biological research. The term 'outsourcing' became more well known largely because of a growth in the number of high-tech companies in the early 1990s that were often not large enough to be able to easily maintain large customer service departments of their own.

Many companies also outsource customer support and call center functions. And "[T]he trend is not surprising." Because "[A]merican companies are under pressure to reduce costs, and foreigners can do a lot of high-tech jobs more cheaply than