Certification - June 2008 - (Page 36)

jobs would be outsourced to other countries. Companies specializing in outsourcing are cropping up in many different industries, so the trend is becoming increasingly popular on many fronts. One of the reasons foreign employees are willing to work for less money is because there are so many of them, and at that point, it’s simple supply-anddemand economics. As U.S. companies look to cut costs, having fewer employees on hand directly lowers the cost of doing business. It’s more cost-effective to pay a fixed cost and outsource the positions. Reasons for Outsourcing There are several reasons why companies outsource jobs overseas. The first and foremost is cost savings. Labor in other countries costs much less than in the U.S. Rising costs of salaries, health care and insurance make the U.S. worker more expensive. Also, there is a huge workforce in India with a lot of talent. One of the reasons foreign employees are willing to work for less money is because there are so many of them, and at that point, it’s simple supplyand-demand economics. As U.S. companies look to cut costs, having fewer employees on hand directly lowers the cost of doing business. It’s more cost-effective to pay a fixed cost and outsource the positions. As a corporation grows, it sometimes loses its ability to focus on strategy and future plans. This is another reason companies outsource. Many companies become reactive in their day-to-day operations. The help-desk workers and other first-line positions spend a lot of time putting out fires and less time planning and strategizing for the future. By having another company handle these everyday tasks, current staff is able to concentrate on higher-level IT issues. Quality and Language Barriers Are Risks As beneficial as it can be, there are downsides of outsourcing. Quality control may become an issue if there are no policies or regulations to keep standards of service in check. The outsource company must be able to solve the problems it is faced with so it does not frustrate users into giving up or seeking help elsewhere. Outsourcing companies usually are focused and knowledgeable about what they are doing and do it quite well. A company should ensure the function being outsourced is done better than what could be provided in-house. A cost savings is not going to help if clients are dissatisfied with the service they are receiving from an outsourcing company. The outsource company also must provide tangible numbers and statistics on what they are 36 CERTIFICATION MAGAZINE June 2008

Table of Contents Feed for the Digital Edition of Certification - June 2008

Certification - June 2008 Editor's Letter Contents Data Stream Tech Careers Academic Connection Dear Techie Virtual Village Online Degrees: Are They Right for You? Inside Certification New Opportunities and Challenges: Are Application Developers Ready? Interface Where Have All the Help Desks Gone? Ad Index Endtag

Certification - June 2008

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