subject: I, the Graduating Engineering Student Turned Incidental Writer (twelfth stride) – Basic premises 2 [print this page] Foreword Foreword
This series of articles, on the travails and torments of required writing for school term papers, thesis or dissertation, are purposely taken in the point of view of the student in the graduating or senior years. Hopefully, they reveal how much anguish and agony he goes through in every phase of the activity he is obliged to present, even to defend in front of a panel of peers, prior to receiving his much toiled-for diploma.
Previously
The graduating student is earnestly deep into the project study he previously regarded with antipathy. Through conscious force of habit, he goes back to the fundamental concepts and definitions to preserve his focus.
More on my research on the Business Process Outsourcing industry:
It is estimated that every dollar of U.S. labor cost assigned overseas, generates $1.12-$1.14 in additional value for the American economy by making goods and services cheaper, and companies more competitive.
An Overview
The global revenue amounts to US $ 525 billion, of which US $ 74.5 billion are from Technology Crossover Ventures. Broken into specifics, also in US $ billion:
By Industry: Financial Service 20.4, Manufacturing 16.2, Telecommunications 12.8, Energy 6.7
Healthcare 5.7, Travel 5.4, Business 3.9, Retail 3.4
By Function: Infrastructure 27.0, Applications 10.0, Network 7.1, Financial 2.8, Contact Center 2.4
Multi-processing 1.4, Procurement 1.2, Human Resource 0.9
Leading destination countries worldwide with their respective share of the industry:
India 21%, Russia 10%, Philippines 9%, Eastern Europe 8%, United States 7%
Mexico 7%, Israel 7%, all the rest 31%
Pros & Cons of outsourcing to third party vendors:
Advantages
Focus on business core only.
Benefit from best-of-breed solutions.
Better quality at lower costs.
Better process maturity, resource flexibility and economies of scale.
Flexibility in deploying new technology.
Disadvantages
Burden of excess capacity or challenge of insufficient capacity.
High personnel attrition.
Tight business margins.
Not enough local financial muscle to sustain tight payback periods.
Unforeseen developments
Pros & Cons of outsourcing inside host or origin country:
Advantages
Securing data is less complicated.
Capture margins that would otherwise go overseas
Decision making authority contained within the organization.
Tighter management control
Disadvantages
Expensive specialist skill in host countries.
Compliance and legal restrictions.
Unavailability of skilled manpower due to market stagnation.
Requires considerable effort in terms of management's time and attention to establish
Job categories moving offshore from the United States in the years 2000-2005-2010-2015:
Management: 0 - 37,477 - 117,835 - 88,281
Business: 10,787 - 61,252 - 161,722 - 48,028
Computer: 27,171 - 108,991 - 276,954 - 72,632
Architecture: 3,498 - 32,302 - 83,237 - 84,347
Life Sciences: 0 - 3,677 - 14,478 - 36,770
Legal: 1,793 - 14,220 - 34,673 - 74,642
Art, Design: 818 - 5,576 - 13,846 - 29,639
Sales: 4,619 - 29,064 - 97,321 - 26,564
Office: 53,987 - 295,034 - 791,034 - 1,659,310
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I, the Graduating Engineering Student Turned Incidental Writer (twelfth stride) Basic premises 2
