Sunday, November 25, 2012
TWIF Flattener 5 - Outsourcing
Use one of the current events sources linked at http://mrsfridaysclass.wikispaces.com/Current+Events to find a recent news article that relates to, supports, or refutes Friedman's assertion that outsourcing was a "flattener." Your comment should include the title of the news article, a link to the article, and a summary of the article including an explanation of how the article relates to this point. Don't forget to check your rubric for evaluation criteria!
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US employee 'outsourced job to China'
ReplyDeletehttp://www.bbc.co.uk/news/technology-21043693
Flattener number five in summery is about the Y2K crisis. America had a date problem with their computers, so sending the load to India was the best solution. India had many eager, young, smart adults that could fix the complication. In the recent news article the reader finds that an American is using outsourcing for their personal gain. By sending his work information to a company in China to work on, the American was reported to be sitting at his desk watching cat YouTube videos. This is a beautiful example of outsourcing because one individual from one country sends to another individual in another country a problem to fix.
The outsourcing bogeyman
ReplyDeletehttp://www.aljazeera.com/indepth/opinion/2011/08/201182974857986142.html
This article discusses how many politicians do not understand the benefits of outsourcing. For example, the article describes Senator John Kerry being overwhelmed by the fact that digital x-rays are being examined by radiologists in India, meanwhile this benefits both the radiologist, and the American customer. The article also describes three fears or "myths" that politicians believe to be true about outsourcing, but are proven to be false. The myths include outsourcing: being like a tsunami and taking away everything, only being from rich to poor, and costing jobs. This supports Friedman's hypothesis as it refutes the proposed myths about outsourcing by describing the global benefits. The article, like The World is Flat, explains that jobs created in the East (outsourcing), are the result of the same jobs being too uneconomic in the West.
Barry Callebaut Buys Swedish Plant, Signs Danish Outsourcing Deal
ReplyDeletehttp://www.reuters.com/article/2013/01/18/barrycallebaut-idUSL6N0AN0MV20130118
This article discusses the recent buying out of ASM Foods AB and its chocolate Factory in Sweden for $35.38 million. In addition, it also talks about Callebaut signing an outsourcing deal with Carletti A/S that the chocolate will now be made in Denmark. This correlates back to "The World is Flat" because in the fifth Flattener he discussed outsourcing. Clearly, since the factory was only working at 50% of its capacity, it was having money issues. Outsourcing in Denmark will provide the factory with quality labor at a cheaper price, raising profits (this all being done with the new company owner though). This is a perfect example of outsourcing in Europe.
When Cheap Foreign Labor Gets Less Cheap http://economix.blogs.nytimes.com/2012/12/07/when-cheap-foreign-labor-gets-less-cheap/
ReplyDeleteFriedman says one reason that companies have outsourced jobs is to take advantage of cheap labor costs in foreign countries. This article says that recently there is a narrowing of the wage gap between U.S. workers and foreign workers. The narrowing is because U.S.household incomes have decreased. The narrowing in the wage gap along with other advantages to keeping jobs in the U.S., like cheaper energy and shipping costs, are making some companies "re-shoring" manufacturing jobs back to the U.S. This article shows that in future years as economic condiditions change companies will adapt which means outsourcing could remain popular, or become less popular.
Outsourced Grades
ReplyDeletehttp://economix.blogs.nytimes.com/2010/04/06/outsourced-grades/
This article explains that teachers at the University of Houston, teachers are now experimenting with outsourcing their grading to Bangalore. Virtual-TA, a service of a company called EduMetry Inc., has taken over the grading process of the University of Houston. The shortcomings of Ms. Whisenant, director of business law and ethics studies at Houston's seven teaching assistants led her to try out this company. Outsourcing the grading helps professors and teaching assistants resist the temptation to inflate their students’ grades as well as relieve them of a traditional and sometimes tiresome task. This somewhat agrees with Friedman's idea that outsourcing is used to exploit cheap labor. The fact that this service cost little money may play into the use of outsourcing in this situation. But, the fact that grades will be less biased can also play into the decision.
Mallick: Why outsourcing your own job is closer than you think
ReplyDeletehttp://www.thestar.com/opinion/editorialopinion/article/1317274--mallick-why-outsourcing-your-own-job-is-closer-than-you-think
The word "cheaper" is now known as a synonym for "better." This article by Mallick explains how outsourcing is becoming more and more common, and recently was in local news because a man tried to outsource his job to a man in China. The idea of outsourcing is becoming so much more common because it is cheaper to send products to other countries to do tasks for cheaper labor than have it done where it would cost more. This is saving companies money. The article also discusses how Canada has lost many jobs because of outsourcing. This article relates to Friedman's explanation of outsourcing, and makes it obvious that outsourcing is flattening the world. It is evident that the world is flattening because this is making us connect with many people of other countries much more often, and use their cheap labor to benefit our business advancement.
Indian IT companies set sights on software outsourcing deals worth $50 billion in 2013
ReplyDeletehttp://economictimes.indiatimes.com/tech/software/indian-it-companies-set-sights-on-software-outsourcing-deals-worth-50-billion-in-2013/articleshow/18107877.cms?google_editors_picks=true
This article talks about software outsourcing to India, a subject that is referenced frequently throughout the book. The contracts of these companies are up and the new deals are thought to be worth around fifty billion dollars. This news reiterates what Friedman mentions about India throughout flattener five. In the chapter he acknowledges that the United States laid an abundant amount of fiber optic cable throughout India in the 1990s. He also talks about India's Institutes of Technology which produce very capable students in need of jobs. These new deals of the future will employ many of the Institutes' graduates. The US started outsourcing software to India in the 1990s and still are doing so today creating many jobs for people overseas.
Looking to Save, IRS Stops Outsourcing Collections
ReplyDeletehttp://www.npr.org/templates/story/story.php?storyId=101558116
In The World is Flat, Friedman states that outsourcing is any type of service that can be sent somewhere else outside of the original place to be performed. Usually, people tend to outsource their services to the smartest people. Also, companies tend to outsource their work to whomever is going to perform the task for the cheapest amount. The article mentions that the government will hire more people to work directly as collection agents for the IRS. Outsourcing of collection delinquent taxes for the IRS became quite expensive and cost approximately $500 billion. Originally, it was outsourced by the Bush administration to privitize federal jobs. The cost, in this case, was not relevant. However, the bills would keep increasing. Therefore, Obama stated that if the IRS banned their outsourcing, the tax payers would save up to a total of $40 billion a year. President Obama also mentions that people should not be outsourcing since it is a job the government should do. The article relates to this particular flattener. This is evident based on the fact that the article basically disapproves of outsourcing. It is believed in the article that in this case, not outsourcing will save the American people money. This contributes to the flattening of the world because the American government can worry about other affairs occuring around the world instead of concentrating on what they are outsourcing to different countries.
India’s Outsourcing Industry Welcomes Obama Win
ReplyDeletehttp://india.blogs.nytimes.com/2012/11/07/indias-outsourcing-industry-welcomes-obama-win/
This article is about how Indian people in the outsourcing industry are happy about Obama's victory. Despite Obama stating that he wants to prevent outsourcing in the future to try to reduce the unemployment rates Indians are still satisfied with Obama's victory. According to Friedman outsourcing is the ability to move work to other places where a company would experience either higher wages or better productivity. The article portrays the flatterer as a doorway to prosperity to both the United States and India. Outsourcing flattens the world because it provides nations to gain a grip on world markets.
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DeleteWhen the H.R. Office Leaves the Building
ReplyDeletehttp://www.nytimes.com/2012/12/02/jobs/more-companies-are-outsourcing-their-human-resources-work.html?_r=0
This article is about how companies are now outsourcing their human resources department. The human resources department is supposed to be a personal place for employees to ask questions, seek advice, or file a complaint. Companies are doing this because human resources does not have to do with the core of the business, plus it saves the company a great deal of money. The problem with outsourcing in this department is that the individuals that work for human resources firms specialize in training, recruiting, and career development. So it might not be worth saving money if these outsourced employees cannot perform at the same rate. This has to do with The World is Flat because Friedman comments on how outsourcing has become more popular over the last decade, and how this trend will continue. This article shows an example of how outsourcing might even be going too far. Some companies would now rather save money by outsourcing, than hire a reliable employee that they know would perform better than an outsourced employee.
India's Outsourcing Business On the Turn
ReplyDeletehttp://www.economist.com/news/special-report/21569571-india-no-longer-automatic-choice-it-services-and-back-office-work-turn
The article talks about India's huge part in outsourcing, and how businesses came to start outsourcing to India. The article cites that the two biggest outsourcers to India are TCS and IBM, and the rush to outsource to India started after the Y2K crisis. India is the largest outsourcing company in the world at the moment and its numbers continue to grow. This relates to The World is Flat because Friedman praises the benefits of outsourcing and how it is continually used in India. Outsourcing supports Friedman's theory that it is a flattener because it helps businesses cut costs when they outsource and the work is still top-notch, which flattens the world because it allows all businesses to save money and it helps India in gaining knowledge and experience when competing globally.
Welcome Home
ReplyDeletehttp://www.economist.com/news/leaders/21569739-outsourcing-jobs-faraway-places-wane-will-not-solve-wests
This article is about how the company GE said that outsourcing was yesterday's model. Previously GE's production was mainly in China. Today they have moved much of their production back to Kentucky. This shows a progression from Friedman's view on outsourcing which was that many companies were doing it to save money. This is true however many companies are realizing that there can be a very small difference in production cost in the United States compared to other countries such as China
Worker Outsources Own Job to China ... Makes Profithttp://www.newser.com/story/161073/worker-outsources-own-job-to-china-makes-profit.html
ReplyDeleteA chinese subcontracter outsourced from his own home. While his company paid him his salary, he was going on facebook and bidding on ebay. They finally caught him and found out that he was outsourcing other jobs making tons of money. This relates to flattener 5 because the freedom at midnight allowed for people to gain employment. This man got jobs from outsourcing and that is what flattener 5 was all about. So that people can work from their homes for their jobs.
Onshore Outsourcing, Wages, and Benefits
ReplyDeletehttp://krugman.blogs.nytimes.com/2012/07/05/onshore-outsourcing-wages-and-benefits/
This article is in reference to Mitt Romney's Off and Outs. It discusses non-offshore outsourcing stating that it is still beneficial in reducing wages and increasing benefits. It states that due to this, Bain's doings make up America. It wasn't about moving jobs overseas, but instead rewriting the social contract.
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ReplyDelete