Globalization and Outsourcing


n. The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.

Essentially: a company reverts to outsourcing to lower production or labor costs by manufacturing or hiring employees from an external source.

Digital Stories

A - Design and Innovation

Design and Innovation Instructions

Producer - BrayAnna B

Video Number: 6.a.35
Title- Teens and Outsourcing
Summary- This is my video about how outsourcing affects teens. Right now teens are affected by outsourcing because outsourcing provides them with the things that they need for everyday life. In the future, teens will outsource their homework to other countries and pay the people a very small amount to do it.
URL- ****
Location- Westwood Schools, Camilla GA
Outsourced Clips- Malia and Meagan

Producer - Maegan M

Video Number: 6.a.36
Title - The Downside of Outsourcing
Summary -This short clip basically gives a recollection of what almost everyone has been through, when dealing with outsourced phone companies. It reveals the great downsides to outsourcing and makes you think about whether or not outsourcing is such a good idea after all.
- Los Angeles County Highschool for the Arts, USA
Outsourced video: Bryanna, Westwood School, Georgia, USA

Producer - P Nelling

Video Number: 6.a.37
Title: Puppetcast 1: A Look at Medical Outsourcing
Location: MICDS-St Louis Mo

B - Story and Empathy

Story and Empathy Instructions

Producer - Christoph M

Video Number: 6.b.38
Title: Globalization and Outsourcing
Summary: My movie is about Globalization and Outsourcing, It is a story about how Outsourcing can affect communication between people by different accents and dialects.
URL - This Video is embedded straight on the Wiki.
Location - Vienna International School, Vienna (Austria)

Producer - Patty

Video Number: 6.b.39
Title: Who is Affected by Outsourcing?
Summary: What happens to families and workers when they have to move to another country for work? What about the education of their children? How are our lives changed by globalization and outsourcing?
Location - Shanghai American School, Shanghai

C - The Fun Factor (Play)

The Fun Factor (Play) Instructions

Producer - Sara D

Video Number: 6.c.40
Title - Globalization and Outsourcing- The Fun Factor
Summary - My video is about globalization and outsourcing, it is the fun factor. In the video, i am going to show how the world is developing and how the developments are spread around the world. It also includes how technology plays a big part in our lives today. Also, there are many zones of the same shops all around the world.
- Qatar Academy, Doha- Qatar

Producer: Malia L

Video Number: 6.c.42
Title: The World Collapsed?
Summary: my video is about what would happen if the rest of the world suddenly collapsed, and we were left with hardly anything. Everything that we take advantage of and use on a daily basis would be gone. It shows how much we really take advantage of other countries and how important they are to our satisfaction, comfort, and entertainment every single day.
Location: LACHSA, U.S.A
Outsourced Video Segment Producer: BrayAnna B, Westwood Schools, Georgia.

Producer - Annabelle W

Video Number: 6.c.41
Title - Globalization and Outsourcing- The Fun Factor
Summary - A case study of interviews on how 15 year old girls are playing in a globalised world
- PLC, Melbourne Australia


Outsourcingfirst started in the 1980's with the intent of lowering the cost of production or labor, redirecting or conserving energy, and making use of worldwide employment, technology, capital, and resources. Outsourcing is a means of connecting the nations to one another through business, therefore globablizing, hence the name of the book: "The World is Flat", with "flat" referring to the connectivity. Businesses utilize outsourcing commonly throughout their production, customer management, and services processes. For example, a computer company may not manufacture all the components required to assemble their final product within their factories. Instead, they depend on components from other companies - software, hardware, or parts. Additionally, their customer service representatives and technical support may not all be people employed direfctly by the company. Specifically, Intel microprocessors, Seagate hard drives, and Samsung LCD panels hire outside companies to manufacture parts. Some software publishers outsource by hiring outside firms to develop products and manufacture packaging. U.S. computer companies have established manufacturing and development in countries such as India, Malaysia, Thailand, and Mexico, this is where labor is inexpensive but of good quality. America Online, American Express, and Dell all have customer support people from India, Singapore, China. Call centers have started to outsource their technical support to other countries, where wages are lower.


Pros and Cons of Outsourcing:

supported overseas
different languages
strong telecom infrastructure
tensions between countries
access to a large workforce
Canadian costs are similar to US costs
learn our different dialects of English
some countries have poor labor

Outsourcing Advantages and Disadvantages:

Outsourcing advantages:
  • Cost savings
  • Staffing levels
  • Focus
  • Morale
  • Flexibility
  • Knowledge
  • Accountability

Outsourcing disadvantages:
  • Poor quality control
  • Decreased company loyalty
  • A lengthy bid process
  • Loss of strategic alignment

Current News

Current Outsourcing Trends

Articles reviews on current outsourcing trends

To outsource or not to outsource - that is the question.

In this article, there is a dilemma as to whether to outsource or not to since outsourcing itself has its own disadvantages.


"While some tech companies farmed out call centers to India, the resulting language problems, cultural differences and information security made the process less than seamless for some customer or tech support services," said Michael Conley, vice president of key accounts for the Forsythe Solutions Group.

There is a possibility that language and communication could be difficult between the employees of the company doing the outsourcing and the employees of the company they've hired, especially in an international setting. Though certain languages are emerging as the "language(s) of business" and more people are learning second and third languages, communication can still be difficult.

Impact on Education

Salma's Video, International School Dhaka

The video mainly focuses on outsourcing and its impact on education . The guest speaker is Vicki Davis.

Education has been greatly influenced by the wealth of information available in the technological, globalized world.

Online tutoring is a service in which students are connected with an educational tutor through the internet. Information can be communicated quickly, without the hassle of having to meet in person.

Online tutoring via mail is a system in which a tutor and a student communicate through e-mail. The student e-mails questions directly to a tutor, who responds with answers or directional cues.


Another form of online tutoring is communication through instant messaging. This can be easier since problems can be solved and discussed in real time, and explanations can be fuller and more focused on specific questions from the student, without the wait time of email, similar to being in a classroom with a teacher.This form of tutoring required the use of audio as well as video devices and these are available in Skype or the latest version of MSN messenger and yahoo messenger. A good online tutoring strategy may incorporate both forms of online knowledge delivery for effective and lower cost knowledge delivery.

In the video where Ms Vicki was being interviewed, she discussed how many schools outsource maintenance of their gradebooks system and technical support. Since it has just started there will be more of that in the future. For example in ISD we outsource our blogs thus this saves trouble.

Another wiki (virtual communication) can elaborate on various ways you can communicate for tutoring over the internet.
The Web 2.0 wiki can also describe new ways to communicate for online tutoring.
The Work Flow Software wiki talks about the sharing of information and files.

Impact on Employment

Outsourcing Industry


Many businesses have started relying on other countries for employment. Some rely on other countries for computer parts or etc. Many ask one question about outsourcing: is it Good or Bad?Outsourcing is costing American jobs daily. Some view that outsourcing is not affecting our economy. Some businesses are outsourcing because it is cheaper to pay the people from other countries that it is to pay American workers. In the background section of outsourcing examples are given of some companies that outsource for parts and labor.

My Video on Outsourcing Employment

My video includes introduction to topic, pictures, clip of technical support specialist, an interview with David Stargel, and my opinion.


Some criticism on outsourcing employment is that the unemployment rates may be increasing in America and that the quality of the outsourced items may be poor. America Online uses outsourcing in the technical support area. If you get a call from them, they may be talking in a foreign accent, most cannot understand what they are saying. The majority of the people would rather talk to someone that talks with the same accent and dialect versus someone who talks in, for example, Chinese.


The language is another employment issue. If one cannot speak the correct languages, then they should not be able to work. In India, some of the businesses have to go through courses to learn different dialects of the American language. Personally I would rather speak to someone who speaks like I speak versus someone who you cannot understand at all.

Thomas Sowell

An American economist, commentator, and political writer. He is described as "America's leading philosopher."
'Outsourcing':an article on outsourcing by Thomas Sowell


Some Outsourcing Companies

Should your business outsource?: this website lets you enter figures and etc. to see if your business is right for outsourcing or not.

Full Interviews

Personal Insights on how outsourcing affects our daily lives.

From Countries Doing the Outsourcing:
Coming from America, i can say that most of the products that we use and take advantage of in our daily lives are all outsourced from different parts of the world. They are manufactured and shipped over to the U.S for our enjoyment. Everything down to the clothes we wear up to the foods we eat. We don't realize it but we depend so much on other countries for our daily necessities and personal enjoyment. As of this moment, most of my clothing and what i like wearing everyday is made in and comes from India. paint that i use, incense that i burn, the oil that we use to drive our cars are all outsourced!! The list is endless! What about our cell phones? That's something we definitely use everyday of our lives. And computers? I'm using one at this very moment! this entire project would not be possible without the use of computers, which are all outsourced from different places around the world. -Malia, U.S.A

From Countries Being Outsourced To:
Living in Shanghai, China, a lot of what I take part in and what I see every day is a result of outsourcing. Shanghai, a city in which new projects and new buildings seem to spring up every week, is constantly being made bigger, taller, and more advanced because of Globalization. Where I live, and especially downtown, you can’t go seven kilometers without hitting another Starbucks or Pizza Hut. Really becoming internationalized, Shanghai is becoming a focal financial and business hub. Even the school I go to, Shanghai American School, was made to accommodate the expatriate population in Shanghai. As a result of outsourcing, our parents come overseas to China for their work, and International schools like the school I go to are established for our education here in China. Also, because these schools are established, a staff and faculty must be hired, most likely from outside of China. So as you can see, Globalization and outsourcing has affected China by creating an International environment for workers and for city residents like myself, and also provided job opportunities for people coming from overseas (overseas meaning not China) such as my teachers and my parents.
By Patty, China



2006 - Salma and Katie
2007 - BrayAnna, Andrew, Malia, Peggy, Maegan, Patty, Sara D