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Globalisation in business
Globalisation in business
What is the economic impact on the usa of outsourcing
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Outsourcing and the Global Environment
Abstract
The following paper will detail the impact on businesses concerning outsourcing and the global environment. This paper will outline the needs of the modern business to embrace the concept of outsourcing and the need to educate employees on the diversity of global business practices.
Outsourcing
The need of the modern business to look outside of the doors of the company to improve profit margins has become a necessity in today’s market. The advent of technology and crossing of borders have expanded this search for efficiencies to other countries.
There have been great strides made in the global market to outsource various segments of businesses. One of the biggest gainers in this arena is India. India has been capable of handling several procedures handled by companies such as the customer service phone calls and technical support calls for companies such as Dell computer.
Company outsourcing is often met with extreme resistance from within the country. The first form of resistance arrives in the form of the notion that outsourcing automatically means that a US employee is going to be displaced. This is not always the case. There are often enough jobs to be sent overseas at a reduced cost avoiding the need to hire more domestic employees.
The issue of displaced employees is one of concern and needs addressed. The employee that may be displaced by the outsourcing of company efforts often may be retrained or ...
But First, Training Foreign Replacements” reveal the importance of the article to an international marketer. Outsourcing and offshoring prove to be the few topics one can learn in this article. An international marketer gains a better understanding of outsourcing and offshoring by recognizing the effects on the company, business, and economy. An important aspect of an international marketer’s career is to assess the market from a global perspective. An international marketer needs to know whether a company is outsourcing it’s employees incase they do not and need to market and appeal to potential employees for the company. An international marketer needs to understand the effects and how the topics outsourcing and offshoring work to gain a better grasp the company or business as a
A primary stakeholder, and perhaps the most vocal of all stakeholder groups, is the Canadian labor force. Offshoring affects Canadian workers in two major ways. First, when businesses decide to offshore certain functions, jo...
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing American jobs seems to have been slightly overshadowed. If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this “phenomenon”.
Opposed to widespread belief of outsourcing threatening the labor of United States economy it has been seen that businesses have been able to extract a multitude of benefits through the outsourcing which has in turn created a number of employment opportunities along with it. When the stock market plummeted; companies began to discharge distress signals and corporations commenced labor cutbacks, as a result of which unemployment began to increase greatly. In times when the recession was reaching its peak, the only alternative was to look for cheap labor and ou...
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
“5 Facts About Overseas Outsourcing.” Center for American Progress, Center for American Progress, 9 July 2012,
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
To stay competitive in the fast growing Telecom sector in India, the firms should be efficient and able to retain customers by reducing the cost of service. This can be achieved by better managing its capital expenditures. One of the options available for the Bharti is to go for strategic outsourcing. The case illustrates the innovative approach to gaining competitive advantage through outsourcing and also discusses the pros and cons of outsourcing. If the deal is successful, Bharti can reduce its capital expenditure and can grow with the growing customer base, and can effectively reduce the costs.
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
They were going to need the best technologies that were available to them. With the constant growth, Bharti needs a way to be competitive in the growing industry. Akhil Gupta, the former CFO and current managing director, recognized that the company was not able to handle its growth and maintain high customer service along with having to manage its ever-changing IT and network services. His proposed idea to handle the challenges Bharti was faced with in their IT and network services was to outsource those areas in which Bharti was not completely competent in. Could outsourcing be the way of the future for Bharti?
In the late 1980's the rise of India outsourcing had its start. During this phase, India provided skilled contract workers for the US. Efforts to outsource projects to India arose in the late 1990's. This was driven by a combination of rapidly changing technologies and shrinking IT budgets Little by little the small offshore development projects started to multiply. In the beginning it was trial and error because there wasn't much focus on a repeatable and process driven model. During this time offshore outsourcing led to several failures. The big outsourcing force during the late 1990's came with Y2K. Work needed to get done quick and outsourcing to Indian companies was a solution to this. Indian companies had the ability to scale rapidly.
... of business with a focus on developing domain consulting carving niche markets etc. Until date, the Indian it industry has concentrated only on 2 service lines, namely, application development and application outsourcing. So, it needs to increase IT consulting, network infrastructure management, systems integration, IS outsourcing, IT training and education. Hardware support and installation and network consulting and integration, etc.
When Americans hear the word “offshore outsourcing”, they automatically assume that Americans are losing their jobs to foreign countries. Most of these jobs that companies outsource such as the garment industry jobs are offshore outsourced because they are labor intensive jobs. According to Timmerman