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Tracing Back The Origin Of Outsourcing
from:When societies first formed, the people in those communities began to deal in services, goods and other items they could trade amongst themselves. Outsourcing started first with the production of tools, food and household appliances, and a worker outsourced an activity to another worker.
In the industrial age there was not too much outsourcing going on. In fact in the 1800’s and 1900’s the organizations were integrated vertically and each organization took care of its own manufacturing, mining and production from start to finish. The retail stores who sold the goods were also owned by the main company, so nothing was being outsourced.
Most companies of the time not only handled their own taxes, but they were self-insured, had their own lawyers and even built their own buildings, offices and factories without any outside help or assistance.
During the industrial revolution there was a lot of growth in the area of outsourcing especially in such service areas as insurance, engineering, and architecture. At the time, even though they had started to outsource, almost everyone lived in the same country, city and town. When the service industry came into being, they started to do outsourcing and gave their jobs to outside contractors.
The history of outsourcing shows that outsourcing started with manufacturing of items such as apparel, toys and shoes. Later on high-tech items such as consumer goods and electronics were starting to be outsourced and in fact pricing through outsourcing was extremely competitive. In search of lower costs, many manufacturers started to look for offshore assistance, and began to employ offshore companies to do the work for them. As transportation means increased so did offshore manufacturing jobs, since the goods that had been manufactured offshore could now travel back at a faster pace and be sold in the retail and department stores.
As the lower income countries improved in their skills, and the people became more educated, outsourcing too became more important and more cost effective. In the 1970’s in the United States computer companies outsourced their contracts and this has continued ever since. Billing, processing and payrolls have also been outsourced where necessary. Insurance companies covering the cost of medications and medical clinics who administer your records use claim processing centers that are offshore in such places as India, the Philippines or Russia.
Eventually many companies in the United States and Europe realized that outsourcing was a good method of keeping costs low and now even data-transcription, information technology and call centers are being outsourced.
Job Outsourcing Specific links
Job Outsourcing News
St George gives reprieve to 200 IT staff - Great Lakes Advocate
St George gives reprieve to 200 IT staff Great Lakes Advocate St George had pledged publicly weeks earlier that any outsourcing would not result in job losses, although the positions may not have been guaranteed once the transfer to IBM had been made. Fairfax understands the bank's back down was triggered when ... |
Romney Calls American Education 'Third-World,' Something He Recognizes From ... - Evening Transcript (satire)
![]() Globe and Mail | Romney Calls American Education 'Third-World,' Something He Recognizes From ... Evening Transcript (satire) By BC Bass "I know better than Barack Obama what a third-world education looks like; I've outsourced thousands of jobs to third-world countries." -- Mitt Romney BOSTON, Mass. (Bennington Vale Evening Transcript) -- Bain Capital, a private equity and ... Obama Jobs Council Has Buyout Execs Despite Bain Attacks Romney Can't Explain What He Learned in Business Obama campaign targets Romney's record as governor |
Outsourcers: Now is the time for the next step in productivity - ZDNet
Outsourcers: Now is the time for the next step in productivity ZDNet Commentary - Slow job growth projections combined with an upcoming presidential election have made "outsourcing" a four-letter word in American business circles. The largest proponents of outsourcing have remained quiet about their projects and ... |
St George gives reprieve to 200 IT staff - Sydney Morning Herald
![]() Sydney Morning Herald | St George gives reprieve to 200 IT staff Sydney Morning Herald St George had pledged publicly weeks earlier that any outsourcing would not result in job losses, although the positions may not have been guaranteed once the transfer to IBM had been made. Fairfax understands the bank's back down was triggered when ... |
Cable dismisses Beecroft proposals for outsourced public sector workers - The Guardian
![]() The Guardian | Cable dismisses Beecroft proposals for outsourced public sector workers The Guardian The business secretary refused to rule out examining some parts of the "gold-plated" Tupe rulebook, which protects workers' pay and jobs when they move to a new employer, saying there could be some issues to "clear up". But Cable, who is involved in a ... |










