Assignment Number 1; SAD1

In-house resource is same as the word outsourcing. According to Wikipedia.com

“Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company.The decision to outsource is often made in the interest of lowering cost or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources^. Outsourcing became part of the business lexicon during the 1980s. It is essentially a division of labor.”

As I have search for the cause and effect of outsourcing I read this article

“Outsourcing is the transfer of work to other countries where labor is cheaper. One side says that the government should not regulate what businesses do and that when American businesses prosper, Americans prosper. The other side says jobs are being taken away from America’s middle class and that the government should step in and force companies to hire Americans and pay them decent wages. The first three quotes below are in favor of outsourcing and the last three are against outsourcing.

“Large software companies such as Microsoft and Oracle have increased outsourcing and used the savings for investment and larger domestic payrolls.” – Daniel Drezner

“That's because of all America's absolute and comparative advantages, the most important one we've got is freedom. And freedom consists mostly of having a government policy to do nothing.” – Don Luskin

“Countries with a vested interest in their economies are much less likely to go to war, and there is virtually no possibility that they will go to war with countries that participate in their economies.” - Thomas L. Friedman

“3.3 million U.S. jobs will be shipped overseas by 2015.” – Forrester Research

“Criticism of outsourcing from the public and media sometimes tend to concentrate on lackluster customer service and technical support being provided by either local workers who are not actually employees of the company, or by overseas workers attempting to communicate with Americans in broken or incomprehensible English.” - Wikipedia

“Outsourcing appears to threaten the livelihood of domestic workers and, in the United States, the American Dream.” – Wikipedia.”

http://www.google.com.ph/search?hl=tl&q=cause+and+effect+of+outsourcing&btnG=Maghanap&meta

Another article is:

“Globalization and technology are amplifying the impact of outsourcing. For decades, American foreign policy has been to urge developing nations and Communist countries to join the global economy in earnest. Now they have, and vast numbers of skilled workers have joined the world labor force, seemingly overnight. Countries like China, India and Russia educate large numbers of engineers. Add the low-cost, nearly instantaneous communication afforded by the Internet, and an Indian computer programmer making $20,000 a year or less can replace an American programmer making $80,000 a year or more.

“The structure of the world has changed,” said Craig R. Barrett, chief executive of Intel, the Silicon Valley company that is the world’s leading computer chip maker. “The U.S. no longer has a lock on high-tech, white-collar jobs.”

Many American workers are worried that outsourcing is just beginning, and they fear that in an information-age economy all kinds of jobs are potentially at risk. Not only anxious workers in the United States take that view. Nandan Nilekani, chief executive of Infosys Technologies, an Indian outsourcing company, declared at the World Economic Forum last month, “Everything you can send down a wire is up for grabs.”

Another difference, some analysts say, is that during the 1980’s, the interests of American workers and companies were more closely linked than they are today. From 1984 to 1986, the American semiconductor industry lost $4 billion and shed 50,000 jobs in the United States.

“But now, it is the workers who are suffering and not the companies,” said Ronil Hira, an assistant professor for public policy at the Rochester Institute of Technology. “The companies outsourcing jobs overseas are profitable and mostly gaining market share. There’s no gun to their head this time, no real motivation to address the issue.”

Beyond jobs shifted, the broader impact may be to put pressure on the wages of many technical workers in the United States, who increasingly live under the shadow of foreign competition. “

- http://emergic.org/2004/02/16/outsourcing-causes-and-effects/

By that definition, it gives me idea to on what is the concern of the question; assignment number 1.

As I read the question on assignment number 1 I come up to this several questions.

First: What is in-house resource/s?

Second: Why does an establishment tapped in-house resources?

Third: What could be its advantages? What its disadvantages?

Fourth: Was it a good decision?

Fifth: As a student, what could be its effects?

An establishment; a school, a company, so on so forth decided to apply this what we called “in-house resources,” for me, because of economic circumstances. Why? We can’t predict our economy and unfortunately our country is suffering economic crisis. By that reason, in order to survive, people will think of any solution into their problems but of course. For an example, the University of Southeastern Philippines (USEP) decided tapped in-house resources. What could be reasons on why is it so? USEP is one of the promising schools not only in Davao City, but also In the Philippines. And whatever happens to the country will have an effect on the university itself. The University I must say produced and consists of individual who is globally competitive. There are dilemmas in the school which can handle and manage yet unluckily, there are those problems that can’t be deal with by the university. On the brighter side, USEP always look for a way to minimize and come up to solution which is always to its advantage. Why look for “something” outside, if we could have the “big thing” inside. Same as, why does the university look for a solution outside the school if the university alone produces those I called “big-thing”? Why look so far if we have it under our nose?

The advantage is in the university’s side. Why? It is also, could be, hitting two birds at one stone; one decision two outcomes. The first one is the university’s benefits when it comes to financial. The school will not pay for someone else’s work instead saving it for school projects, etc. or maybe, just, maybe, lessen the tuition of the students. That latter will be a big help not only to the students but also to their families. The second result is for the name of the university. It is good to hear that a university can solve its problem on its own; could provide solution and can produce those “globally competitive” people. For me, the profile of a university lies on the undergraduates, graduates, faculties & staffs. The disadvantages, on the other hand, sometimes we haven’t notice what we have not until we lose those things which making our lives more complicated. What I mean is that the university took so long to notice that they have assets who have great minds. Nonetheless, as for now, I guess the university notice there treasures. There could always be a room for changes and improvement.

Was the idea a good decision? For me yes. As I said, the decision is only to neither the student nor the teachers but absolutely to the whole university. As a student, as a USEP’ian, it could really a big help for me, for us.