Macro Economic Issues Of Offshore Outsourcing

Seminar paper from the year 2004 in the subject Computer Science - Commercial Information Technology, grade: 2 (B), University of Mannheim (Information Systems), course: Industrialization of Software Development, 27 entries in the bibliography, language: English, abstract: Topic of this paper are the macro economic issues of offshore outsourcing. First inland and offshore outsourcing are described, especially focused on IT outsourcing. Then reasons for IT offshore outsourcing are illustrated. Popular offshore markets are introduced and the advantages are shown. In the next chapter, problems and risks of offshore outsourcing are explained. Both the more general view and IT specific problems and risks are described. Here general problems as well as problems of IT outsourcing are mentioned. Then consequences of the offshoring trend are illustrated. Apart from consequences for IT branch, especially consequences for national economies of western countries, e.g. Germany, are viewed in detail. There can be short term and long term consequences. Future offshore outsourcing trends help to understand the effects. The development of unemployment caused by offshoring is one main focus. Furthermore offshoring trends in other white collar work besides IT are shortly described. At the end this the paper develops an idea about possible solutions for western countries. Potential reactions of the government and suggestions on how to create new jobs are presented in detail. The paper finally ends with a small conclusion.

Seminar paper from the year 2004 in the subject Computer Science - Commercial Information Technology, grade: 2 (B), University of Mannheim (Information Systems), course: Industrialization of Software Development, language: English, abstract: Topic of this paper are the macro economic issues of offshore outsourcing. First inland and offshore outsourcing are described, especially focused on IT outsourcing. Then reasons for IT offshore outsourcing are illustrated. Popular offshore markets are introduced and the advantages are shown. In the next chapter, problems and risks of offshore outsourcing are explained. Both the more general view and IT specific problems and risks are described. Here general problems as well as problems of IT outsourcing are mentioned. Then consequences of the offshoring trend are illustrated. Apart from consequences for IT branch, especially consequences for national economies of western countries, e.g. Germany, are viewed in detail. There can be short term and long term consequences. Future offshore outsourcing trends help to understand the effects. The development of unemployment caused by offshoring is one main focus. Furthermore offshoring trends in other white collar work besides IT are shortly described. At the end this the paper develops an idea about possible solutions for western countries. Potential reactions of the government and suggestions on how to create new jobs are presented in detail. The paper finally ends with a small conclusion.

Leading experts analyze the impact of the rapid growth of offshore outsourcing in manufacturing and IT. For some it promises more rapid economic growth and for some developing countries it is an opportunity to leapfrog, while others are sidelined but it also means labour and governments may lose bargaining power vis-à-vis globally mobile capital.

Feenstra first contrasts the views of trade economists Paul Krugman and Edward Leamer, who both relied (to different ends) on the Heckscher-Ohlin model. He then examines the new type of trade model whereby the production processes transfer across countries.

"This book covers a wide range of topics involved in the outsourcing of information technology through state-of-the-art collaborations of international field experts"--Provided by publisher.

This collection of papers examines key trends in the internationalisation of employment, drawing on the proceedings of an ILO conference held in Annecy, France in April 2005. The papers focus on three related issues: the impacts of trade and investment abroad, including the offshoring of production of goods and services, and effects on the winners and losers in terms of employment; adjustment methods for coping with the short and medium term problems related to the globalisation of employment; and the importance of international instruments to help ensure a level playing field in trade and promote development, drawing on established rights and international labour standards.

"The conference held to discuss intiial versions of the chapters .. " -- p. vii.