The Outsourcing of Information Technology Jobs Research Paper

The Outsourcing of Information Technology Jobs - Research Paper Example This paper discusses various aspects of IT outsourcing phenomenon and the reasons as to why firms outsource. According to reports by Gartner, the worldwide IT services outsourcing market is currently worth about 50 billion USD with the ITES and BPO market being worth about 130 billion USD (Pettey, 2009). The economic recession has had a downward pressure on the outsourcing market. In 2008, India with its leading companies such as Accenture, Infosys, Wipro, TCS and many other had a 63% market share of the IT outsourcing market. This is a decrease from the 70% market share it enjoyed in 2007 when India was the preferred destination and now other countries such as Eastern European regions, China, Taiwan and South Africa have entered the market. This is a reduction from the 2004 figures that placed the IT outsourcing market at 163 billion USD (McCue, 2005). Clearly, the market has been worsted by the economic recession, failure of large banks and insurance companies, failure of large automobile manufacturers and many other firms. Outsourcing has been around since a few decades and the best examples were outsourcing of food and catering business, janitorial services, housekeeping work and so on. This was actually also called as ‘in sourcing’ since outside companies and vendors came to work inside a firm. The outsourcing and in sourcing phenomenon has been regarded as one of the forces that flattened the world. Among the 10 flattening forces, Friedman has listed five forces that can be regarded as leading to outsourcing. The forces are: 4th force Open-Sourcing; 5th force Outsourcing; 6th force Offshoring; 7th force Supply-Chaining and 8th force Insourcing (Friedman, 2005). The world firs realized the benefits of outsourcing when Kodak outsourced its whole IT department to IBM for 6 billion USD. Up till then, IT outsourcing was only done for data entry work, electronic transcription of hard

Case studty (marketing) Essay Example | Topics and Well Written Essays - 1750 words

Case studty (marketing) - Essay Example k due cognizance of changing customers’ requirements and used various market metrics to track customers were found to be the major facilitators for improved performance outcome of OQTA in 2004. The fast changing socio-economic paradigms and advancing technology has tremendously changed the dynamics of market strategies. ‘Organizations must change because their environments change’ (Bateman, 1990). In the contemporary times, the customer has become much more informed and technology has provided him with more options within the similar product lines, but produced by different companies. The case study of Outback Queensland Tourism Authority or OQTA is a case in point where application of marketing theory significantly improved the performance outcome of IQTA. Outback Queensland Tourism Authority or OQTA is a non profit premier organization of Queensland, Australia that is primarily responsible for the marketing, promotion and development of the tourism industry of Queensland’s Outback. OQTA promotes the interest of 21 government agencies and has around 230 members comprising of various stakeholders like tour operators, accommodation and transport providers etc It was observed that despite an intensive and focused mass communication campaign through brand building advertisements in television and radio, outback tourism saw 5% less visitors during 1999 to 2003. The present situation would be analyzed for the decreasing business and efforts would be made to identify the areas that lacked focus and new strategy that need to be pursued to turn it around and increase tourism activity in the outback. Outback covers substantial 48% of Queensland. While the lack of funds might have contributed to low business to some extent but the major factors that were responsible for low turnout of visitors were primarily because OQTA market strategy lacked of market orientation and brand building rather than the customers was the main focus of the marketing activities. The