Impacts of Technology on Outsourcing Outsourcing has become so widespread in recent years that we can be said to be living in the age of outsourcing. Outsourcing has grown globally to such a scale that many companies and organizations have uprooted their entire workforce and relocated to other nations for various reasons. The global outsourcing market has continued to grow exponentially over the past few decades, which would explain why many companies are turning to it. According to Chamberland (2003), the global outsourcing market was estimated at $72 billion in 2002, expected to rise to $100 billion in 2005 and increase exponentially in the coming years. With such attractive numbers, many companies are flocking to take advantage of the expanding market. Chamberland (2003), also points out that, according to major consultancy firms, the outsourcing market uses only 10% of what can be completely 100% outsourced. Therefore it can be said that the market is not yet fully utilized and saturated. As companies begin to realize this potential, the market is likely to grow even larger than expected. However, companies should be careful to analyze the possible advantages and disadvantages of outsourcing in their companies before investing in it. In this study I will discuss some negative and positive relationships between technology and outsourcing. Using peer-reviewed articles I will demonstrate the overall impact of technology on outsourcing. This paper will exemplify why industries choose to outsource, the parties involved in outsourcing, and the role of technology in outsourcing. I will start by providing a brief overview of outsourcing and other types of outsourcing such as net sourcing, in-sourcing and shar...... middle of paper ...... as it allows low-cost workers to perform tasks that normally would require higher paid workers. In these cases, technology allows companies to reduce labor and production costs while still producing high-quality services or products. Finally, technology can be a disadvantage for companies that don't want to outsource. These companies are left with the option of spending large sums to keep up with ever-evolving technological innovation or outsourcing to companies that already have newer technologies. In this case, the organization may lose control over product quality, service quality and internal hiring. I believe that with the information presented in this study, the organization should fully analyze the impact of the technology on its operations, service output and the objective it wants to achieve before engaging in outsourcing initiatives.