| The government is an agency that was mentioned a | | | | countries, because many countries have a hard time |
| lot in the assigned readings. I have some insight on the | | | | finding labor. America is employing the world. On the |
| government and how it makes its IT decisions, and the | | | | other end, consumers have a hard time with |
| level of performance at which the government is | | | | outsourcing, because currently, Americans are having |
| expected to follow. As far as shareholders and the | | | | a hard time finding labor as well. It is quite sad when |
| value of a company, outsourcing may or may not | | | | we look at items purchased and they are made in |
| substantially increase or decrease shares. Investors | | | | another country. There has to be a way to put some |
| pay particular attention to the type of IT company, and | | | | sort of a cap on outsourcing, although many investors |
| the type of outsourcing in order to develop good | | | | will disagree. |
| reasoning. The question is, are standard financial | | | | Why would an investor disagree with outsourcing? |
| investment information and criteria are all that is | | | | Outsourcing is a positive thing for any investor |
| needed to effectively evaluate IT outsourcing | | | | because it means more money for the company and |
| decisions? The answer in my opinion is yes and no. | | | | more money for the investor. It is actually quite simple. |
| Outsourcing is something that is not taken lightly. There | | | | When outsourcing though, a thorough financial analysis |
| are many steps involved when resorting to | | | | should be conducted. After all, by outsourcing you are |
| outsourcing, and a strong management is critical. If | | | | setting up an entire new company on the other side of |
| invested money is spent on an outside company and | | | | the world. A company in debt may have a harder time |
| the company turns out to be a failure, people are losing | | | | outsourcing, because investors may be more than |
| money, and are seeking your company for answers. | | | | careful. A company that has a lot of equity means |
| The government works a little differently than the | | | | that they have money to back them in judgment. A |
| civilian sector, because of many reasons. The | | | | company is saying that not only are they relying on |
| government has a strict budget to follow (most of the | | | | investors to pull them through, but they are relying on |
| time), however there are times that the budget means | | | | their own funds as well. This shows that they are |
| nothing (i.e. war). For example, IT equipment that is | | | | more than convinced that the company they are |
| needed for day to day operations on a CONUS | | | | outsourcing to is not going to let them down. |
| military installation will have to coordinate with their | | | | Performance measurement is critical in outsourcing |
| resource advisors for funding. If the money is there, | | | | because it develops definitions for a company. By |
| and the equipment is indeed necessary, the equipment | | | | analyzing data, a company should be able to |
| is usually purchased. The different between a CONUS | | | | approximate how much more money they will bring in |
| installation and an overseas-deployed environment is | | | | compared to if they decided to keep jobs in the US |
| the budget itself. For example if an installation required | | | | (or whatever country the company originates). Initially |
| that same IT equipment as mentioned before, there | | | | there are going to be some up-front costs, but I believe |
| are usually no questions asked, the equipment will be | | | | that those up-front costs are covered rather quickly |
| purchased with funds, and if funds are not available (I | | | | with outsourcing. |
| am sure there are always funds available in a | | | | Are companies really doing the right thing by |
| deployed environment), they will be acquired someway. | | | | outsourcing? My answer is yes and no because like |
| When we are speaking about wartime contingencies, | | | | anything else, there are many sides of the equation. An |
| people's lives are at stake, and the US will do | | | | economic crisis can stem simply by lack of jobs and |
| whatever it has to, to make sure we have the | | | | resources. A solution to an economic crisis is to bring |
| equipment that we need at all times. | | | | more jobs back into the country. What does that |
| Outsourcing can have positive factors and negative | | | | mean for the companies - less profit. There is not a |
| factors. It depends how you look at outsourcing, and | | | | single company that is willing to bring jobs back to the |
| which end you are on (the operating end or the | | | | US in order to benefit our country. If there were, they |
| consumer end). If you are on the operating end, | | | | would be setting a strong example. If a company says |
| outsourcing may benefit your company by saving | | | | they would be willing to cut back on 10% of their total |
| money. I believe that is the bottom line with outsourcing. | | | | profits, and bring even 5,000 jobs into the country, they |
| Again, a company should be very particular when | | | | would be setting an example that I think others would |
| outsourcing, because the sub-contractor (outsourced | | | | follow as well. |
| company) is a direct reflection of your company. | | | | The bottom line is that money is money, and no matter |
| According to CNN, the following popular IT companies | | | | how much of it a company has, they always want |
| outsource labor: Microsoft, Apple, Sun Microsystems, | | | | more. Most Americans dream to own a small business, |
| IBM, Cisco Systems, Hewlett-Packard, Dell, and | | | | to own their own house, pay their own bills, and to be |
| Gateway. Keep in mind these are just a handful of the | | | | self-reliable. Once a business takes off, it is hard to |
| many companies that send jobs overseas to earn | | | | stop. |
| maximum profits. Outsourcing is great for overseas | | | | |