Essay on Offshore Outsourcing - 1661 Words

Offshore Outsourcing Currently, it has been reported that many of our jobs, as much as one out of every three private-sector jobs are being sent overseas. What is offshore outsourcing? Outsourcing occurs when a firm subcontracts a business function to an outside supplier. Outsourcing is mainly the result of companies who will always pursue the lowest-cost structure, which means less skilled work will move out of the U.S. to emerging economies. Many believes that this is a good thing, because living standards around the world will rise, and workers in developing nations will get new and higher-paying jobs, and consumers in the U.S. will be able to buy products that are cheaper than if they were made at home.†¦show more content†¦This positive change in our economy now has many economists believing that the same process is going on in services. Why offshore outsourcing? Many businesses have turns to offshoring as a way to boost their profits. The most obvious benefits of offshoring for the businesses and English-speaking destination countries are the lower wages in foreign countries such as India, China, Korea, Philippines, etc†¦ which translates into significant savings and often, improved quality. Offshoring doesn’t just benefit businesses alone, a recent McKinsey Global Institute study notes that offshore outsourcing will allow America to capture economic value through multiple channels: †¢ Cost savings: For every dollar of spending on business services that moves offshore, U.S. companies save 58 cents. The savings from reduced costs means more savings, which can be passed to consumers or to investors to reinvest. †¢ New revenues: Companies that provide offshore services need goods and services themselves, ranging from computer and telecommunications equipment to legal, financial and marketing expertise. And often they buy these from the U.S. companies. †¢ Repatriated earnings: Many offshore service providers are in fact U.S. companies that repatriate earnings.Show MoreRelatedOutsourcing And Offshore Outsourcing : Outsourcing1038 Words   |  5 PagesRunning Head: Outsourcing and Offshore Outsourcing 1 Outsourcing and Offshore Outsourcing Natasha Bing Grantham University Outsourcing and Offshore Outsourcing 2 Abstract (Greaver, 1999) proclaims that outsourcing is of a strategic nature and that the decision-makingRead MoreOffshore Outsourcing: Good or Evil? Essay2179 Words   |  9 Pagesdevelopment that affects information technology as deeply as the growing offshoring movement deserves attention. It should be noted that offshoring is often treated as synonymous with outsourcing; however, these two methods of increasing a business’s productivity are not necessarily the same. Outsourcing occurs when a business pays another business or individual – sometimes called a vendor or subcontractor – to perform work that is important to the operation of the first business. For exampleRead MoreOffshore Outsourcing Essay1693 Words   |  7 Pageswill discuss offshore outsourcing and the effects it has on the American worker in a technology environment. We begin with the scope of the problem and how it has changed the economy for better and for worst. Various figures representing miscellaneous data about off shoring will be represented. The topics include the background and nature of offshore outsourcing, reasons for outsourcing, why trading promotes gain, current economic standing from outsourcing, and finally how outsourcing affects wagesRead MoreOffshore Outsourcing Essay1447 Words   |  6 PagesOutsourcing is simply the farming-out of services to a third party. 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Offshore outsourcingRead MoreAdvantages And Disadvantages Of Offshore Outsourcing Essay1765 Words   |  8 Pages Advantages and Disadvantages of Offshore Outsourcing Kati Methvin University of North Alabama â€Æ' Advantages and Disadvantages of Offshore Outsourcing Today, offshore outsourcing is an attractive alternative to in-house or domestic production. The approach imports several advantages that appeal to companies, particularly multinationals, which explains the great traction that it has gained across the globe. Even so, delegating tasks to foreign third parties also carries a suite of new risks that businessesRead MoreCorporate Offshore Outsourcing And Its Relevance For Workers Rights1684 Words   |  7 PagesThis paper explores the issue of corporate offshore outsourcing and its relevance to workers’ rights. First and foremost, it is necessary to define both corporate offshore outsourcing and workers’ rights in order to fully grasp the issues associated with corporate offshore outsourcing. Next, this analysis includes reasons for the emergence of this practice and the negative consequences of this practice on both workers in the United States and abroad. The current issues with this practice are exemplifiedRead More An Ethical and Global Analysis of Software Offshore Outsourcing2791 Words   |  12 PagesAn Ethical and Global Analysis of Software Offshore Outsourcing Introduction Before acquiring its current negative connotation, outsourcing referred to the practice of turning over parts of a business to a company that specialized in that activity. For instance, Cisco Systems, Brocade Communications, and other leading original equipment manufacturers (OEMs) outsource their manufacturing to Solectron Corporation, where I was a summer intern. By partnering with Solectron, OEMs can gain accessRead MoreThe Benefits of Offshore Outsourcing Essay974 Words   |  4 PagesIf offshore outsourcing has such a negative impact on the economy, then why are businesses practicing it? Is it just because of greed? Actually, offshore outsourcing can promote economic growth in some ways. First off, what exactly is offshore outsourcing? Simply put, offshore outsourcing is a business tactic where a company sends a part of their service to another country to be run by a different company. Offshore outsourcing has been seen as a negative business tactic. However, it affectsRe ad More The Outsourcing of Private Medical Information Offshore Essay2002 Words   |  9 PagesThe Outsourcing of Private Medical Information Offshore The estimated $20 billion medical transcription industry[1] turns a doctor’s audio notes into an electronic record. These notes could contain diagnosis, x-ray analysis or a myriad of information essential for communication between healthcare providers[2]. It could also contain sensitive information such as whether a patient has cancer, a sexually transmitted disease, or some other information that the patient would like to keep private