Bussiness Management and Outsourcing Essay Example | Topics and Well Written Essays - 3000 words

Bussiness Management and Outsourcing - Essay Example Moreover, the threat of significant job losses allows large firms to demand changes to labor legislation that further weaken labor. In addition to endangering jobs, wages, labor standards and union powers, globalization also hastens the decline of social safety nets (Becker, 1993). Citing international competitiveness, business has been able to shift the tax burden to labor. But job losses and low wages will erode this tax base, reducing governments' ability to finance welfare programs. Globalization thus undermines labor strength, reinforcing the impact of higher levels of overall unemployment on capital's ability to control the workplace in the developed economies (Bateman and Snell 2004). Service Industry Analysis At the beginning of the 21st century, IT is viewed as a strategic tool which helps organizations to expend their activities and increase profits. IT outsourcing is often seen as an opportunities to provide a competitive advantage and increased value for the enterprise. The absorptive capacity based on appropriate technology related skills needs to be measured against both the demands of the international economy and the local environment where a skills base for using IT is even more important. Changes in management philosophy are giving opportunities to the small and medium-sized enterprises that cater to the demands of national and internationally operating companies (Cullen and Willcocks, 2003). However, the businesses that fare well under the new management organizational scenario are those which acquire the necessary business, commercial, and technological skills. The main causes of outsourcing are prices and wages, communication and transportation costs. For many companies, cap acity building to develop appropriate skills is a dynamic process. As... It is stated that today, the UK economy mostly depends upon international labor supply and international business relations. Taking advantage of technology transfer opportunities, their rapid industrialization has been aided by the introduction of advanced technologies that result in labor costs substantially below those in similar industries in the developed economies. This in itself would contribute to the surge in exports to the developed economies. There are several problems with outsourcing faced by the state and companies. Recent years, a large number of engineers have been sent abroad by SMEs and TNCs. Thus, critics admit that the UK needs these research projects to be kept at home. In conclusion, IT outsourcing helps companies to improve their main operations and service quality, gain competitive advantage and save costs. It proposes company opportunities to reduce labor costs and increase service volumes and a number of traditional services proposed to customers, restructure business and invest in personal growth and development. Companies are increasingly finding that, if they combine their information assets with those of other companies, the combined information resource is considerably more useful to all sides. In this new environment, small companies may have advantages created by outsourcing, because their contact with customers will mostly be channeled through the telephone, or increasingly e-mail, they will be able to record and keep track of their customer's preferences and needs much more effectively.