In order to accurately provide the facts that you can use in developing today’s topic, it is important that a brief discussion of two concepts included in the topic heading should be had. The two concepts—5-paragraph essays and outsourcing—are novel concepts to most students who are used to writing simple composition essays and anyone who has not yet entered the crowded job market.
5-paragraph essays are prose compositions that follow the prescribed format consisting of an introductory paragraph, three body paragraphs and a concluding paragraph. Using this particular format, body paragraphs are written in such a way that the first sentence states a fact or introduces an idea while the preceding sentences provide more information about the introductory sentence. Outsourcing is slowly but surely becoming the working process with a global appeal. It can be described as the global practice of obtaining goods or services from an outside supplier.
We would like you to also note that this article is the first in a series consisting of three articles written to provide you with directions on how to write on outsourcing and global remote employment. So please ensure that you check the other article that provides 20 5-paragraph essay topics on outsourcing and global remote employment.
10 facts on outsourcing and global remote employment:
- Outsourcing helps manufacturers meet deadlines. Statistics show that the average manufacturer outsources a large percentage of its finished product in order to meet set manufacturing deadlines. In 2013, studies on outsourcing proved that approximately 70% of all finished products produced in the developed world were outsourced and 90% of companies who outsource claims it helps them beat deadlines as it provides enterprises with more time to focus on other business processes.
- Outsourcing forms a huge part of the GDP in the developing world. Outsourcing has become a major source of GDP growth in the developing world. The outsourcing global market is estimated to generate approximately $507 billion dollars on a yearly basis and that number is still set to grow. On the other hand, electronics manufacturing makes up $381 billion and 80% of outsourced jobs are done predominantly in Asia and parts of Eastern Europe.
- Outsourcing is cost effective and saves enterprises money. A reduction in production cost has been identified as the major reason companies outsource jobs. A survey conducted on the IT and business industry showed that 87% of companies chose to outsource certain jobs to save cost. Breaking down this percentage, the survey showed that 30% of outsourcers believe it was cost effective, 55% believe it was somewhat effective while 15% saw outsourcing as ineffective.
- Freelancers gain a lot from outsourcing. The freelancing industry is a major gainer from outsourced jobs and the industry presently accounts for approximately $2billion of outsourced jobs. There are wage disparities though; the average freelancer in the United States earns approximately $23.32 per hour while the average freelancer in Asia and Africa earns approximately $2 per hour.
- Outsourcing is an important part of the IT industry. Outsourcing is more prevalent in the IT sector than any other industry vertical. Statistics show that the IT sector currently makes up more than 60% of the total outsourcing market. The banking sector on the other hand outsources approximately 40% of its activities while 54% of companies—cutting across IT, banking, Insurance etc.—outsource their customer service requirements overseas.
- Legal tasks are also widely outsourced. Although IT outsourcing is more predominant, legal work is also being outsourced to English speaking countries from the developing world. A study found that approximately 67% of employers outsource sensitive legal opinions or jobs to foreigners. Globalization has also played its part and 65% of employers now outsource legal counsel while 56% of legal research is currently been outsourced to other regions. Not surprising, India and the Philippines play a stellar role as the major recipient of outsourced legal work.
- Sales and marketing jobs are the least likely to be outsourced. Strategic planning functions are some of the jobs most companies say they are unlikely to outsource and sales/marketing tasks fall under this category. Statistics show that approximately 89% of enterprises do not plan to outsource strategic planning functions, and 80% say sales and marketing tasks are too region sensitive to be outsourced.
- India leads the way in receiving outsourced jobs. Studies show that India is currently the country that receives the bulk of jobs outsourced from the western world and statistics are provided to support this claim. 59% of companies worldwide outsource jobs to India while an additional 22% plan to move jobs to India in the near future. India also leads in the number of outsourced IT jobs it receives with 65% of all IT jobs being outsourced going to IT firms in India.
- China is the favorite destination for outsourced manufacturing jobs. China currently comes second to India in the number of jobs currently outsourced to it. Approximately 36% of all outsourced jobs go to China and a large percentage of it consists of manufacturing jobs. In 2015, statistics showed that between 2002 and 2014, approximately 3.2 million US jobs were moved to China and 2.4 million of these jobs were from the manufacturing sector.
- Outsourcing is seen in a negative light in the western world. In the US, outsourcing has received some criticism and is being blamed for the mass job loss that had occurred during the 2007 financial recession. A study had shown that approximately 86% of the US workers feel that sending jobs overseas negatively affects the US economy.
Here we come to the end of the 10 interesting facts that you can make use of when writing a custom essay on outsourcing and global remote employment. As stated earlier, you can take some inspiration by checking out the 20 topics provided for students writing on this topic as well as read the last article which provides a writer’s guide for 5-Paragraph essay on outsourcing and global remote employment for your reading and learning pleasure.
Lee, H. and Sim, S. (2015). Global Outsourcing and Wage Inequality in Middle-Income Countries: Evidence from South Korea. Global Economic Review, 45(1), pp.19-41.
Zhang, T. (2011). International Outsourcing and Unemployment in a Minimum-wage Economy. Review of International Economics, 19(4), pp.776-786.
Grossman, G. & Helpman, E. (2002). Outsourcing in a Global Economy. Cambridge, MA.: National Bureau of Economic Research.
Lees, A. & Ashtok, A. (2010). Made in India: Are you Ready for Outsourced Contract Manufacturing?. Journal of Commercial Biotechnology, 16(3), pp.258-265.
Aydinliyim, T. & Vairaktarakis, G. (2010). Coordination of Outsourced Operations to Minimize Weighted Flow Time and Capacity Booking Costs. Manufacturing & Service Operations Management, 12(2), pp.236-255.
Kirkegaard, J. (2012). Offshoring, Outsourcing, and Production Relocation – Labor-Market Effects in the OECD Countries and Developing Asia.