The new global IT value chain - what comes after offshoring

what comes after offshoring

Seminar paper from the year 2005 in the subject Computer Science - Commercial Information Technology, grade: 1,0, European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Information Systems II), 39 entries in the bibliography, language: English, abstract: The world is changing, more than ever before it is not granted, that a once learned job will earn one money in the future, or if it will still exist at all. Employees are frightened that their job will end up in the vortex of global sourcing, as jobs are more and more displaced to low-cost countries as companies strive to safe their costs. This development is part of the globalization, as international trade borders fall and markets open for global competition. It is taking place in a rapid pace and first comprised mostly production jobs, as companies in those low-cost countries where able to produce at much lower costs, as are companies in western economies with high social standards and therefore costs. While at first, it where only easy manufacturing jobs, nowadays even complex products as Notebooks are only manufactured and assembled in low-cost countries, mainly in China. And the trend to higher complexity of international transfers is getting stronger and stronger. Now not only production is moving to those countries, but also white-collar work, complex services, and even the management layer can not count on job security in the long run. The buzz-word offshoring is frightening employees, compa-nies are going bankrupt, if they can not cope with the new global pressure, and whole nations expect offshoring to be their deathblow. Realistic? Maybe, but probably not. Offshoring is a very emotional topic, as the individual has to cope with deep changes in their work life and politicians are not able to find answers for arising questions in political crusted industry nations. But most people and management face nescience and react with a new wave of protectionism, which certainly can not be the answer. And while production has the brake of the physical layer like supply of raw material or transportation of goods, changes in the information technology and information service sector are even more rapid, as informa-tion can be transported without delay through the internet and other telecommunication channels. This not only includes IT work, but also constructional blueprints, scanned receipts, phone calls, and more. The aim of this paper is to give an overview of the opportunities and threats associated with offshoring under special emphasis of the IT component. To get access to the topic, the basic concepts and options will be introduced in the second part of the paper. Later a special look on the implications for western countries which...