What is Outsourcing?

Outsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas.

There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers and have fewer overhead expenses to worry about.

Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined, and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.

There are some disadvantages to outsourcing as well. One of these is that outsourcing often eliminates direct communication between a company and its clients. This prevents a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delayed communications and project implementation. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly.

While outsourcing may prove highly beneficial for many companies, it also has many drawbacks. It is important that each individual company accurately assess their needs to determine if outsourcing is a viable option.

List companies that outsource and those that haven't.

Here are a list companies that outsource and those that haven't.

Advertisements [?] / Is a new web site devoted to issues concerning jobs and Bush's* job-loss economic policies.

Some of the linked pages are still under construction, but I think this site has a lot of potential.

I don't now if this site was inspired by Lou Dobbs' list of companies involved in outsourcing, but I wouldn't be surprised if that turned out to be the case.

BTW, when BFEE 'experts' cite Germany's 10% unemployment, remember that they have been absorbing hundreds of thousands of refugees and the entire former East Germany during the last 15 years! They're actually doing an excellent job, IMHO!

Also, most countries have policies which demand that their citizens are hired FIRST. They only hire non-citizens if no citizen is either qualified or able to do the job.

Repuke arguments don't hold water.

Companies crow about keeping jobs in the USA

By Stephanie Armour, USA TODAY

As concern over the loss of jobs overseas intensifies, some companies are promoting their decision not to hire workers in other countries to replace U.S. employees.

"No outsourcing" could become the latest twist on the "made in the USA" slogan. Now, consumers are compiling Web sites that track which employers outsource overseas, which means they hire workers in other countries to do jobs typically held by U.S. employees. And some businesses are letting clients request that work not be farmed out to overseas workers.

• TaxBrain, an online tax-preparation program, includes a sentence in its program that assures customers its employees are in the USA: "All TaxBrain assistance is served from our office in California; we don't outsource jobs to India or any other third parties."

• At First Health (FHCC), a managed care company in Downers Grove, Ill., clients come to tour the call center before signing up and receive assurances that the company won't outsource.

• Pleasanton, Calif., consumer direct lender E-Loan (EELN) discloses to home equity customers that some application work is handled in India — and then lets clients choose whether to participate or have the work done domestically.

• Alpine Access, a Golden, Colo.-based call center whose employees work at home, appeals to clients by offering to match operators with the type of customers who call. Says CEO Reg Foster: "We're not just keeping jobs in America, we're creating jobs in America."

Consumers are paying attention. Web sites such as list companies that outsource and those that haven't. Those that don't are dubbed "patriotic." U.S. employers will move about 3.3 million white-collar jobs and $136 billion in wages abroad, according to Forrester Research. That's up from $4 billion in wages in 2000.

Sentiment against outsourcing is building. At the federal and state level, legislators are considering bills aimed at discouraging companies from offshoring.

The push by companies to advertise that they haven't outsourced is so new that there are no studies on how many are doing so.

Many companies that do outsource jobs aren't worried. Just 11% believed it hurt their brand image, according to a 2004 survey by Hewitt Associates.

Tom Peters, author of Re-Imagine! Business Excellence in a Disruptive Age, says people may boycott companies as the issue heats up. But companies that don't offshore "will be at a disadvantage."

CA did it to me again !

As you see a few post ago I was outsourced from CA by CANON Friday was my last day at CA/CANON .

I was told that CA need to save some money and didn't think they needed 5 people in the mail room. So they let me go.

God I though now that I worked for the OUTSOURCING company that I would save. God how wrong I was !!!

This is not wright and this is the reason why Corp America is going to hell !!

You want me to by thing from you like cars, food, t.v, ect. THEN KEEP JOB HERE IN THE USA !!!!

The thing that scares me is this is all a fad and Corp America will see ( The Hard Way ) that this will not work and they will not save the money they think they will and we will not stand for it !!

Boycott any company that OUTSOURCING !!!


Did you see sunday paper ? CA doing it again !

Looks like deja vu all over again at CA Inc.

After the stock market closed for the weekend Friday afternoon, CA reported in a regulatory filing plans to eliminate 400 more jobs than planned as part of a restructuring program launched in fiscal 2007, and take an additional $75 million to $100 million in charges tied to the job cuts and consolidation of global facilities.

The original August 2006 restructuring called for 1,700 job cuts, at a cost of $200 million. But in its third-quarter report filed in February, CA quietly increased that number to 2,400. CA spokesman Dan Kaferle said the move was part of a plan to improve the company's expense structure and "increase our competitiveness."

Citing a quiet period in advance of a fourth quarter earnings release, he declined to say which regions, or job titles, would be impacted by the cuts, or specifically why they were needed now.

CA to sell last U.S. property, in Central Islip

this what CA had to say to newsday, gee do CA know how man employees working for them, I guess not because thers mor then 10 people in the 1150 Motor Pkwy office.
well it show how much CA is on top of thing. mybe there get it right next time and yes there will be a next time there just geting started !

CA to sell last U.S. property, in Central Islip

An unassuming advertisement for a 100,000-square-foot warehouse at 1150 Motor Pkwy. in Central Islip might have blended in with those for other sale properties in western Suffolk, but this one will mark the end of an era.

The building, which was described in a Securities and Exchange Commission filing as a "distribution center," is the last remaining piece of North American real estate in the portfolio amassed by the former Computer Associates under the leadership of founder and former chief Charles Wang. When it is sold, all of the company's non-European properties will be leased, according to its most recent annual report.

CA Inc. spokeswoman Michelle Healy said the building, which was advertised in Long Island Business News, is no longer needed because the company is "outsourcing records management and print shop." She also said that only 10 employees would be "affected" and that the sale is part of CA's effort to become more efficient.

"CA is constantly evaluating its cost structure to ensure it is competitive with its industry peers and making the most effective use of its capital," she wrote in an e-mail. Part of that effort, she wrote, is "working to better align our real estate portfolio with our business needs."

As of March 31, 2006, the company owned 965,000 square feet of office and warehouse space in North America. The year before, CA's annual report read, "We own an approximately 850,000- square-foot corporate headquarters in Islandia, N.Y., as well as various facilities throughout the United States ranging from 15,000 to 235,000 square feet."

Healy declined to confirm information from a popular commercial real estate listings Web site that the asking price for the Central Islip warehouse is $9million.

She wouldn't comment on specific questions about longer-term plans for CA, many of whose top executives live off-Island, except to say, "We remain committed to Long Island."


CA against Wang

Charles Wang, the co-founder and former chairman of Computer Associates, directed and participated in the massive $2.2-billion accounting fraud at the company, according to a blistering report issued late Friday by a committee of outside directors of the company now known as CA.

The report said the company should pursue civil actions for damages of $500 million against Wang and a small circle of former executives around him, claiming they were responsible for fraudulently inflating the company's profit margin to artificially raise the price of the company's stock.

The report also calls for Wang to repay the hundreds of millions of dollars in company stock he received through his management of the company.

The report, filed in Delaware, was prepared at the request of the CA board in answer to civil lawsuits in Delaware and in U.S. District Court in Central Islip against the company, and many of its directors and officers, seeking damages for stock fraud.

In addition to calling for the company to bring a civil suit against Wang, the report has another purpose. It amounts to a legal brief by the current officials of the company, arguing that the only people who should be held liable for damages in the civil suits are Wang and the circle of executives around him. Those executives include his longtime protege Sanjay Kumar, who recently was sentenced to 12 years in prison for involvement in the scheme.

The essence of the fraud was the so-called 35-day month in which the company would backdate some sales made in one month to the previous month to match the expectations of Wall Street analysts, the report said, linking the practice to Wang.

In a rare public statement, Wang said he was "appalled" by the report. "This fallacious report does not serve the best interest of shareholders, customers and employees," he said.

Suggesting the report was based at least in part on information from Kumar, Wang said he found it "hard to understand how the special litigation committee could believe the information they were given was credible, when their sources are those who perpetrated the crimes at issue and then lied about them to both internal company investigators and the government."

Sources familiar with the criminal investigation into the company by the federal government have said that whatever went on at the company, there was never any evidence to bring an indictment against Wang.

The committee's report said it "has uncovered credible and corroborated evidence that Mr. Wang both directed and participated in the 35-day month practice by ... instructing subordinates ... to obtain additional revenues after the closes of quarters to be counted in the prior quarter in order to meet analysts' expectations and ... negotiating and participating in deals he knew to be backdated."

"Indeed, it is the view that Mr. Wang was the direct cause of the 35-day month practice, both due to his actual conduct and the culture that he established, and that it existed for most, if not all, of his tenure as CEO," the report said.

Wang, who co-founded the company in 1976, left it in 2002.

The report portrays a company that for most of its history, according to one unnamed source, operated "as if he were running it out of his garage." In addition, Wang was assailed for establishing a "culture of fear" that brooked no dissent and in which inexperienced people were promoted to positions for which they were not qualified.

The report found the five outside directors of the company at the time of the fraud were unaware of the illegal actions and shouldn't be held liable, including former New York Stock Exchange president Richard Grasso, ex-Sen. Alfonse D'Amato, and current Stony Brook University head, Shirley Strum Kenny.

Wang for the first time acknowledged that during the probe he met with lawyers hired by CA and he said he "fully cooperated with the U.S. government at all stages."

More fundamentally, Wang said, "As the founder of CA, I am devastated by what has happened to the company and feel personally wronged by Sanjay Kumar and the management team he installed."

Meanwhile, dissident shareholder Sam Wyly celebrated. "It's a great day for us," said William Brewer, a lawyer for Wyly. "How do you say, I told you so."