Outsourcing and Its Effects on Business

EXECUTIVE SUMMARY
The subject of this paper is to determine whether outsourcing should be used as an effective tool in business. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. By the 1990's, there has been a major shift from outsourcing blue collar jobs to white collar jobs. Popular destinations for include India and China where mostly white collar jobs such as call center agents, data entry, processing forms etc are outsourced. Companies nowadays are look even more to outsource high-end jobs from the IT sector. There are various advantages and disadvantages. Advantages include lower costs, better quality, downsizing to focus on the core competencies, highly motivated workforce, and Information System performance problems.…