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LOMA
Research Report Explores the Pros and Cons of Outsourcing and Offshoring
ATLANTA, GA, December 15, 2004 -- The
practice of both outsourcing and offshoring has been rapidly rising and
will therefore have a huge impact on the business world for years to
come, according to a new report available from LOMA, entitled Outsourcing and Offshoring: Challenges and Opportunities for Insurance
Companies.
“With
vast disparities in global wages, an opportunity is created for labor
arbitrage, the transfer of work from a high-wage to a low-wage
country,” said report author Jean C. Gora, manager of research at
LOMA. “Firms taking advantage of this opportunity have triggered a
cycle of increasing levels of offshoring and outsourcing, and the
ultimate impact of this cycle is likely to be enormous, with
implications for the economies of countless countries, the salary
structure of many industries, the profit of numerous corporations, and
the jobs of many workers.”
The
focus of the report is on information technology (IT) outsourcing and
offshoring to IT service companies in the
Unites
States
and
India
. Sources for the report include SEC filings, Internet sites, press
reports, and government research.
Topics
in Outsourcing and Offshoring:
Challenges and Opportunities for Insurance Companies include:
-
An
explanation of outsourcing
-
An
explanation of offshoring
-
A
process for selecting providers
-
Reasons
for why the two practices are increasing
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Evidence
of the impact of offshoring and outsourcing on jobs
The 156-page report
was written for business executives in the insurance and financial
services industry. Executives in IT services companies may also find it
useful. The report is free for downloading by employees of LOMA member
companies who are registered with the Members Only section of the LOMA
Web site. A paper copy of the report is available for U.S. $125
(members) and U.S. $375 (nonmembers).
For more information, visit www.loma.org/IndexPage-Research.asp,
telephone 770-984-3784, or e-mail orders@loma.org.
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