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Outsourcing in the Business Environment
they might “lack established processes that can be easily 26, 2006, from http://www.BusinessWeek.com/@@cID9vo
taught through a training manual” (2004, p. 41). The pri- QQiqMVbBcA/magazine/content/04_20/b3883090_mz063.
mary disadvantage of outsourcing for the countries over- htm
seas is the potential economic fallout of war. During the Atkinson, Robert D. (May 2004). Understanding the Offshoring
crisis between India and Pakistan in 2002, there was a Challenge. Progressive Policy Institute, Policy Report.
decline in offshore contracts for several months. Retrieved February 15, 2006, from http://www.ppionline.
org/documents/Offshoring_0504.pdf
FUTURE TRENDS Bulla, Toyia (2004). Outsourcing ain’t what it used to be.
Predictions made by Forrester Research in 2002 indicated Wichita Business Journal. Retrieved January 26, 2006, from
that about 3.3 million U.S. service jobs would be moved http://www.aghlc.com/library/articles/outsourcing.htm
offshore by 2015. By the use of outsourcing, it was Duffy, Daintry (2004, March 1). Outsource with caution. CSO.
believed that 516,000 software and service industry jobs Retrieved January 26, 2006, from http://www.keepmedia.
would be created from 2004 to 2009. Of these jobs, com/pubs/CSO/2004/03/01/460202?from=search
272,000 would be offshore and 244,000 would stay in the Krishnakumar, Asha (2004, January 30). Growing confidence.
United States. If outsourcing were not used, only about Hindu Online, 21, 2. Retrieved January 26, 2006, from
490,000 jobs would be created. The next wave of global- http://www.flonnet.com/fl2102/stories/2004013000360
ization will be focused on sending entire IT departments 9900.htm
overseas.
Miller, Michael J. (2004, April 28). The benefits of offshore out-
sourcing. PCmag.com. Retrieved January 26, 2006, from
SUMMARY http://www.pcmag.com/article2/0,1759,1573729,00.asp?kc=
At one time outsourcing was limited to such services as PCNKT0209KTX1K0100360
housekeeping, architectural design, food service, security, Outsourcing Institute. http://www.outsourcing.com
and relocation. Today, however, outsourcing has become a Outsourcing statistics in perspective. (2004, March 16).
popular choice in business and industry. Although out- Retrieved January 26, 2006, from Center for American
sourcing began with small businesses, both large and small Progress Web site: http://www.americanprogress.org/site/
organizations are now outsourcing. pp.asp?c=biJRJ8OVF&b=38081
Outsourcing is no longer solely a domestic concern. Tesler, Basil (n.d.). Outsourcing IT development: Advantages
Globally, organizations are considering and using out- and disadvantages. Retrieved January 26, 2006, from Intetics
sourcing. With electronic commerce playing a significant Web site: http://www.webspacestation.com/it-outsourcing-
role in the economy, outsourcing is expected to play a news/articles/outsourcing.html
considerable role in the growth of electronic commerce.
Wahlgren, Eric (2004, April). The outsourcing dilemma. Inc.
Magazine, p. 41.
BIBLIOGRAPHY
Ante, Spencer E., and Hof, Robert D. (2004, May 17). Look
who’s going offshore. BusinessWeek Online. Retrieved January Carolyn H. Ashe
ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 575

