Advantages Of Outsourcing And Outsourcing

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Introduction

In 1876 Alexander Graham Bell invented the telephone which enabled people to communicate with one another in an efficient manner. Since then technology has advanced at a rapid pace allowing people to be more connected than ever before. For example, a person working for Pepsi Co in Houston can easily connect with their counterpart in London or Mumbai. The invention of the internet has allowed business to communicate across the world within seconds thus creating a global economy that depends on one another.
Globalization is defined as the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. A global economy allows companies to source their product or service from around the world. This enables business by giving them more options and resources to grow their business. However, globalization comes with its own set of questions and problems. Companies that do business worldwide have to constantly deal with shipping, customs, politics, and cultural barriers. This paper will be centered on the advantages and disadvantages of offshoring and outsourcing. Furthermore, we will discuss some of the factors and trends that are affecting offshoring and outsourcing.
Outsourcing vs. Offshoring
In order to understand globalization, we have to first learn about some of the common misconceptions. The terms “outsourcing” and “offshoring” are used almost synonymously in today’s literature, however, there
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