Outsourcing Information Technology Offshore

Running head: OUTSOURCING INFORMATION TECHNOLOGY OFFSHORE

The Impact of Outsourcing Information Technology Offshore

Strayer University

Abstract

This study explores Offshore IT Outsourcing by U. S. companies. Within the study, information will be provided on the details of Offshore IT Outsourcing including the advantages and disadvantages. It also evaluates different strategies for offshore Information Technology Outsourcing that could benefit both U. S. employees and employers.

This study utilized qualitative information provided by a number of internet journal articles and other studies that provide research on the performance of Offshore Outsourcing. Within this study, library resources include electronic and computer database searches.

The main research question is: What is the Impact of Outsourcing Information Technology Offshore? The sub-questions are: What is Information Technology Offshore Outsourcing? What are the advantages and disadvantages of using Information Technology Offshore Outsourcing? How can employees and employers benefit from Information Technology Offshore Outsourcing?

As a result of the competitive nature of the marketplace, many companies are only interested in the bottom line. They work to find ways to reduce costs without considering the economical or social impacts. The use of Offshore Outsourcing is one of the methods companies are using to increase their profit margin. Offshore outsourcing is the practice of hiring an external organization to perform some or all business functions in a country other than the one where the product or service will be sold or consumed. Reducing operating costs requires finding cheaper sources of labor, and these sources usually reside outside of the United States. Offshore Outsourcing is no longer the wave of the future; it is the current direction most businesses are focused. While companies are rewarded for reducing their costs, it...