Demand for outsourcing among organizations especially in the field of information technology has increased rapidly. Organizations opt to outsource their activities to near-source and offshore outsourcing firms that have high experience in these processes and charge low for the services. With most of the American firms opting for near-source in Canada, Yan there are critics who are opposed to this move. According to these critics, there is a need for some of the currently outsourced services to be performed in the home country. This is due to the differences in process analysis among different countries. Currently, there is a potential for growth of Information technology in Canada with most organizations willing to outsource some of their processes in Canada. This has been due to advancements in IT industry in Canada. However, demand for some of the processes to be performed at home countries may have a negative impact on the Canadian It industry. There is the possibility of most organizations shifting from outsourcing their processes to training their employees. This will deny the industry numerous dollars it has been accruing from outsourcing (Schick para. 2).
An increase in the number of organizations outsourcing their processes to Canada has led to universities and colleges changing the way in which they used to teach information systems. Unlike in the past when students were only taught coding in computer science, currently, students have been motivated to taking more advanced projects. Rend in outsourcing has resulted in students being culturally indoctrinated. Currently, students are being taught different fields in IT which include programming and software development.
Due to differences in methods of process analysis among organizations, outsourcing all processes may result in errors in projects. This calls for some of the processes to be performed onshore. There are different processes that can be outsourced while others need to be done within the organization. Examples of information technology processes that can be outsourced include payroll processing activities, loan processing, and employee recruitment (Schick para. 3-5). This is because these processes are generally uniform in most organizations and do not require a lot of considerations. On the other hand, some of the IT functions that need to be managed onshore include organization management as well as Insurance claim processing. Different organizations have different management techniques. Outsourcing employee training and recruitment process may lead to organizations not getting employees with the required experience. Different countries have different regulations and considerations when it comes to processing insurance claims. Outsourcing these services may result in clients claiming more or less than what they deserve.
With the Canadian IT industry showing potential in its growth, it will act as a major source of employment to its citizens. Allowing It jobs to be processed offshore will hamper the growth of the industry. In return, most of the graduates coming from Universities will lack employment. There is a high need for the Canadian government to step in and stop the flow of Its jobs to other countries (Buckler pp. 23-31). To facilitate ensuring that jobs are processed onshore, the government needs to offer incentives to domestic outsourcing firms. This will help them charge a low cost for the services. In addition, the government needs to come up with strategies on how to train more people in information system fields. This will help in improving the quality of services offered by domestic firms. The government also needs to come up with measures to ensure that the country’s dollar does not scare people from outsourcing their services to domestic companies.
Works Cited
Buckler, Grant. “American outsourcing firms expands Halifax operation.” Computing Canada, 29.23 (2003): 23-31.
Schick, Shane.”The Opportunity cost of offshore.” ITBusiness.ca. February 2004. Web.