The Impact of Global Outsourcing Economy in America

Introduction

The global outsourcing of jobs are becoming more of a major factor in the American economy. In the 1950's global outsourcing was developed. It has a remarkable influence in international business as well as the global market place. The reasons why businesses are outsourcing is because of cost saving, reduced production time, increase efficiency, and core competency focus. Outsourcing decisions are frequently based on current supply competitive pressure and market trends. Global outsourcing has taken place during this past year due to new types of services being outsourced by the US and European firm to developing countries. Such outflow of work is not rare, as the development and discovery of resources and labor skills have spurred outflows of capital for the past 1,000 years. In recent years, IT (Information Technology) outsourcing has become a topic of great interest and the supply chains of major US firms have become extended to the Far East.

Global outsourcing in recent years has received a great deal of attention. Before a company decides whether or not to outsource, part of its activity from either a domestic company or other countries it is critical to understand the effectiveness, pitfalls of outsourcing in the global market. This paper will focus on outsourcing the advantages and pitfalls shown through real word examples.

The people that will benefit from this paper would be organizations,