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Outsourcing of American Jobs

Presented by:Kyle Bowers, Todd CookJay Kovarik, Bill Printup

Leo Rubio04/15/04

Macroeconomics for ManagersMacroeconomics for Managers

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Presentation Outline Outsourcing Overview & History Manufacturing Sector Information Technology Sector Outsourcing Outlook Conclusion… Point – Counter Point

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Outsourcing Overview & History

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Definition Outsourcing: the obtaining of goods or

contracting of work from sources outside a company or area. Oxford English Dictionary traces the orgin of

the word outsourcing to year 1979 We are so short of professional engineers in the

motor industry that we are having to outsource design work to Germany (1979)

To a large extent the products out-sourced are low-technology items such as window cranks, seat fabrics, and plastic knobs. Qoute (Mar. 1983)

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Major Reasons to Outsource Cost: better or equal production

efficiency externally in low-wage paying nations

reduce labor costs reduce technological updating costson a

regular basis improve cost effectiveness

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Major Reasons to Outsource Quality: necessary skills &

knowledge not available internally access to new skill set outsource tasks that are not part of an

organizations core competency

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Outsourcing Overview & History

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Outsourcing Overview & History… cont,

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Manufacturing Sector

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Manufacturing Sector

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Manufacturing Sector… cont,

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Information Technology Sector

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IT Sector

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IT Sector… cont,

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Outsourcing Outlook

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Outsourcing Outlook

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Outsourcing Outlook… cont,

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Conclusion

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Conclusion

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Conclusion… cont,

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Conclusion… cont,

Point 1 2 3

Counter Point 1 2 3

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Questions…