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Outsourcing as the Growth Industry of the 1990s

ce for U.S. small business . . . " (Readers' Views, 1996, p. 85).

Outsourcing is equally as common among America's corporate giants. According to one financial analyst, "Some 20% of the largest U.S. companies now use some form of technology outsourcing" (Verity, 1996, p. 47). Among major corporations, outsourcing is an important cost-cutting measure, which probably accounts for much of its popularity. In 1996, 86 percent of major corporations outsourced at least some functions compared to 58 percent in 1992 (Byrne, 1996, p. 26). When a company decides to farm out some of its business functions, jobs are inevitably lost. Granted, some of these workers will find employment with the outsourcing supplier because transferring existing staff helps to maintain continuity of service. The outsourcing companies themselves have experienced unprecedented growth in employment. For example: "TeleTech Holdings, which handles customer-service calls for such companies as AT&T, expects to employ 5,500 workers by year end, up from 8,000 today" (Byrne, 1996, p. 27). However, the jobs lost by outsourcing is increasingly creating friction between union and management.

One of the most troubled sectors in terms of outsourcing is

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Outsourcing as the Growth Industry of the 1990s. (1969, December 31). In LotsofEssays.com. Retrieved 23:42, April 27, 2024, from https://www.lotsofessays.com/viewpaper/1681976.html