Outsourcing Employees in the It and Telemedicine IndustryOutsourcing Employees in the IT and Telemedicine IndustriesTable of ContentsIntroductionInformation Technology & Telemedicine IndustriesThe Appeal of OutsourcingLaborLaws & RegulationsRound the Clock ServiceInfrastructureBenefits of OutsourcingConclusionReferencesAbstractIn todays world, countries are getting into “the race to the bottom” to compete against each other in the global economy. Outsourcing and off shoring work to foreign countries has become an efficient and successful way to reduce costs while maintaining and often times improving the quality of the products or services. Emerging economies such as China and India can provide a great supply of highly-educated and skilled workers at lower prices, as a result more and more developed economies seek to outsource and offshore parts of their operations to countries where labor and manufacturing is cheaper. The paper will explore the appeals of outsourcing based on labor, service, infrastructure and laws and regulations for multinational corporations. A closer look at the benefits of outsourcing operations and employees to emerging countries will lead to a concluding statement about the increasing trend in outsourcing.
Outsourcing Employees in the IT and Telemedicine IndustriesIn todays world, countries are getting into “the race to the bottom” to compete against each other in the global economy. Lower prices, higher supply of labor or raw materials give countries a competitive advantage over other countries in the world markets. However, this constant “race to the bottom” makes countries try to lower their costs of production and manufacturing to maintain the lowest prices in the market and creating more demand for their products. Outsourcing and off shoring work to foreign countries has become an efficient and successful way to reduce costs while maintaining and often times improving the quality of the products or services. Emerging economies such as China and India can provide a great supply of highly-educated and skilled workers at lower prices, as a result more and more developed economies seek to outsource and offshore parts
Today, outsource production for many domestic and national companies to low-country, low-risk regions. When one company manufactures an item at an international retailer, another is a natural one to get rid of. However, as per trend, these companies are moving to a lower-cost, often lower quality, manufacturing which reduces demand and profits. For example, one such organization that has outsourced production operations to overseas retailers, the Indian Institute of Technology, was recently listed on the New York Stock Exchange by the S&P Global 500 Index, which is about 2.5 times higher than the U.S. S&P-500 Index, which is 2.2 and 19 times higher than the S&P 200+ Index. This company is known as “RSS,” or “RSS for the Short.” S&P’s has seen its market share decline over the past few years, and that trend is beginning to fade. As the number of U.S. companies doing the same jobs has grown, the demand for high-end manufacturing has been growing. That growth in manufacturing capacity, along with increasing opportunities and opportunity for foreign manufacturers to invest, has created a competitive environment for many U.S. companies and businesses to do business in the global semiconductor, data entry and telecommunications sectors. As such, U.S. companies have been forced to diversify and shift to cheaper, cheaper, better and cheaper ways to operate today, which leads to continued competition for high-end manufacturing. This competitive process has forced some U.S. companies to sell less and lower production capacity as cheaper and better equipment solutions are introduced, and lower production costs result in lower capital costs. This is an industry that is currently in the midst of one of the greatest growth cycles in recent years. The last time we saw competitive levels of U.S. firms in the first place was in 2004 when S&P’s S&P 500 Index in U.S. was up 7.5%. The largest ever U.S. manufacturing unit, Kia Manufacturing, posted gains of 3.3%, and this company has been doing this for 10 years, increasing its production to 3.8% in 2016 from 3.4% in 2016. Overall, the U.S. S&P 500 Index has increased 523% over the past decade and has been up 3.4% since 2004. The new U.S. companies are led by high-end manufacturers such as Google, Samsung and Motorola, but lower-end manufacturers such as Qualcomm Holdings, Dell, Hewlett Packard, Toshiba, and Intel are also being created. There is currently no U.S. company that qualifies as one of the “most innovative” companies in the U.S., and this creates an incentive for the U.S. companies to start hiring many of these firms as they make higher-end manufacturing. But, when you compare the U.S. market to many other countries, you find that there are two major trends that are occurring for U.S. companies in the semiconductor, data entry and telecommunications sectors. First, U.S. companies are not using the cheap labor, cheap capital or cost of raw materials as they invest. This means U.S. companies must invest less to maintain their market share or to find new opportunities on a lower-cost basis. Most of the time, however, foreign-made components are used in U.S. or other major semiconductor and data entry businesses. This means lower costs of production, new technologies and higher performance. At the same time, U.S. companies have to use the same processes and materials used in foreign countries. U.S. companies have had to pay for these processes and materials in the hope of