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The single most important tactical reason for outsourcing is to reduce or control operating costs and increase profits. Access to an outside provider's lower cost structure is one of the most compelling short-term benefits of outsourcing. Foreign countries offer the talents of a college-educated workforce at a fraction of U.S. salaries. Partnering with an organization with world-class capabilities can offer access to new technology, tools and techniques that the organization may not currently possess; more structured methodologies, procedures and documentation, and a competitive advantage through expanded skills. Competing corporations are outsourcing operations offshore to have the cost advantages over the market and to free up management resources. Although outsourcing has achieved cost savings and has been used to enter key foreign markets, these benefits may not outweigh the long-term impacts on U.S. industries and the economy.

Large companies such as American Express, Microsoft, Dell, IBM and SAP all offshore outsource to India. All of these companies are very successful and all have excellent profits. When searching on offshore outsourcing India, there are thousands of articles that claim there is a reduction of at least 40% or more in cost and great quality. There are three main reasons that can be accountable to offshore outsourcing to India: 1. Labor - Wages are much lower than American wages, 2. Capital - Infrastructure costs are lower in India then America, and 3. Labor Management - Outsourcing enables companies to do-away with the expenses on bench labor, as the outsourcing vendor allocates the bench employees to projects for other clients or bears the cost of inefficiency. (Kobayashi-Hillary, 2005)

International Business Machines (IBM) is well known for off-shoring their American jobs and helping other American companies to find employees overseas. IBM provides off-shore consultants to deliver highly quality services with lower hourly costs, which reduces operating costs and increases profits for the American company. Although the American company is benefiting from this service, the American people are losing their employment to other countries providing the same services an American provide the company. (IBM, 2008)

According to Alliance@IBM CWA Local 1701 (IBM union), IBM has laid-off approximately 10,000 jobs in American since the beginning of this year. According to IBM's annual reports, IBM employed the following in the US: 2006 - 127,000, 2007 - 121,000, and 2008 - 115,000. IBM 2009 annual report will not be out until late winter, but Alliance is predicting that 16,000 American jobs will be lost in 2009. While Americans are losing jobs, other nations such as India employment has been increasing. According to IBM's annual reports in 2007 to have 98,000 employees in Brazil, China, India and Russia, by 2008 employment overseas increased by 15% to 113,000, mostly in India. (Thibodeau, 2009)

According to United States Department of Labor, from 2006 - 2016 employment for computer programmers will decrease by 4 percent. In 2006 computer programmers held 435,000 in American, by 2016 the projected jobs to be held is 417,000. One factor that will cause 18,000 jobs to be lost is offshore outsourcing. Computer Programmers ar本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。