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Essay: Is IT Outsourcing Good or Bad?

What is outsourcing? It is a decision to produce goods and services abroad. In the modern age of globalization nearly every big corporation produces its goods abroad. When you speak about the USA, you can say that every grand corporation has moved production into the developing countries. The reason of outsourcing is very clear. Companies want to reduce expenditures and cost of production and they move production facilities to China, Indonesia, Pakistan, Vietnam, India, etc. An average American customer has got used to the fact that his clothes, shoes, cell phones, laptops, etc. are made in China or Taiwan; though the official address of a producing company is the USA. On the one hand, outsourcing is profitable for big business. On the other hand, it destroys small business and reduces the number of workplaces for Americans. When a corporation moves its factory to India, Americans are deprived of job. Consequently, this problem is very relevant and controversial.

In the modern age of information IT outsourcing is becoming more and more popular.

Every company requires a good website, administrator and content writers. Therefore, these occupations are very popular nowadays. It is natural that American companies decide to hire programmers and web designers abroad. The reason is the same – money.

Average small companies and big corporations want to reduce cost of production and expenditures on their websites, design and software. Doubtless, an American programmer will ask for his intellectual labor a lot. And he is right, because he has received good and expensive education to master the skill of programming. He can fulfill his duty professionally and rapidly. Unfortunately, his assistance is very expensive, because he wants to survive in his native country with its high prices and challenges. An average American programmer or designer will not agree to sell his program or project for $100, because this price is ridiculous. However, there are many people in the world who agree to work for this money. Consequently, a smart businessman will hire a designer or programmer from a developing country, because he offers cheap labor.

It is easy to enumerate several advantages of IT outsourcing. Firstly, it is cheap and effective. Very often one can hire a real professional who will work for cheap, though he has not received good education. There are thousands of talented programmers in Pakistan, Ukraine, India, China, etc. whose work is excellent. There are cases that they fulfill their work better than a well-educated American programmer who has spent many years on education and self-improvement. No wonder, IT outsourcing is very attractive to every wise entrepreneur. Programmers from developing countries struggle for a workplace and they are ready to work with responsibility, because they need a stable salary. They will complete every order on time and ask little for it. As a result, a company earns millions, because it saves money on IT outsourcing.

When we speak about disadvantages of outsourcing, we should say about unemployment and severe competition on the market of IT. American corporations do not care about American programmers and web designers. They hire foreign experts depriving Americans of job.

In conclusion, we cannot stop the growing popularity of IT outsourcing, because it has its solid strong sides, however it has a few disadvantages that can affect an average American expert.

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