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Obama Outsourcing Healthcare System Essay

549 words - 3 pages

Article Summary

Julka Harsimran, the author of this piece of writing, describes the potential in the information technology sector within the healthcare industry. Recent changes in the United States Healthcare system led by the Obama administration has brought a tremendous opportunity to revamp/upgrade the healthcare insurance records with new electronic projects from conversion of data, to creation of new health and insurance records and processing of claims and sales of insurances to the management of all healthcare data. Globalization plays an important aspect in the sense that the opportunity to obtain this large contract managing all the American healthcare coverage information is not restricted only to U.S. companies, but to international companies as well. Nasscom, an Indian international information technology (IT) service provider, is a major prospective company with ...view middle of the document...

Tangible assets are of physical form such as property properties, plant and equipment or financial assets (cash and securities). The intangible assets are non-monetary and non-physical assets of great value to the firm such as human capital, customers, and intellectual capital. Outsourcing not only diminishes the work force nationally, but also diminishes the labor power in the firm that seeks an international outlet for production, such as IT (Noe, Gerhart, & Wright, 2010). In this article, outsourcing the entire United States Healthcare System to India will have a large impact in the technical local job market. Companies like Google, Apple, and Oracle, are some national IT companies that could have been considered to undertake this contract. Another issue of great concern with the outsourcing of the U.S. Healthcare program is the security and the privacy of information from U.S. citizens.

At the private company level, transferring operations to another country complicates HR functions and procedures because they will have to refocus the strategic vision of the company by realigning HR policies to incorporate international recruitment and foreign HR standardization. Most U.S. companies have restructured and evolved incorporating standardized HR processes to prepare for outsourcing. Broaden knowledge and legal administration will be required due to labor/union contracts to avoid any international legal issues. Additionally, new international staff will have to be appropriately compensated because they will be required to have higher skills, knowledge, educational background, and experience in order to be able to handle international customers (Noe, Gerhart, & Wright, 2010). By outsourcing the U.S. healthcare program, there will be less IT jobs in the U.S. market as well of a risk in the security of the U.S. citizens personal and medical information.

Retrieved from, http://articles.economictimes.indiatimes.com/2012-07-03/news/32523799_1_healthcare-sector-healthcare-insurance-captive-bpo-unit.

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