Abstract
As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.
Outsourcing to
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Organizations may also want outsourcing providers to require background checks for their employees. Just because the country has IP laws does not mean they will be enforced so it may also be wise to put the responsibility of security on the outsourcing provider by requiring monetary compensation if a security breach occurs.
If outsourcing is a strategy organizations want to pursue, security should not be taken lightly. The consequences of a security breach could be disastrous in terms of losing intellectual property to a competitor or loss of customers due to their lack of confidence that their private information is safe.
Customer Service Providing a consistent level of customer service to customers is a top priority of companies who are considering or have already moved part of their operations offshore. The customer service aspect of outsourcing is an important topic because it is equally divided between positive and negative viewpoints (such as?). If an organization fails to properly consider and handle the potential negative aspects of outsourcing, customer service centers, their reputation with customers may be negatively affected. Companies are benefiting from outsourcing because it allows them to offer more time with "live" operators ("Call Center Q & A", 2004, p. 32). Customers are seeing increased hours available for help because of the
However, there needs to be serious analyses done to determine the correct action to take. Financially, many outsourcing deals make sense. Furthermore, it gives businesses an opportunity to have business segments performed by professionals or in a much more efficient fashion; if the proper workforce or operational procedures are not in place. In a small business, I believe that outsourcing is a great way to have complex or strategic roles filled within an organization. Additionally, the customer base is smaller and allows the small business to still interact intimately with each customer. However, for a large business, outsourcing may create holes within the organization that makes them vulnerable. Specifically thinking about customer service roles, Vitthal Gore (2013) talks about the emergence of call center or Business Process Outsourcing (BPO). As the 21st century begins to impact the globe, many countries are being targeted for their people as the new-age workforce (Gore, 2013). Additionally, Gore notes as more people become competent in the English language, the easier it is for a business to tap into the untouched workforces of the East. While many times cheaper for companies to outsource their customer-service segments, many Americans expect a high-level of service from their provider, and as such, some of those quality controls may be lost in a total outsourcing (Gore,
While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service
Outsourcing, especially offshore outsourcing, is not a new topic, but a continuing controversial global trends for the industry of manufacturing, and information technology. As Corbett said, outsourcing is the practice of transferring non-core competitiveness jobs to other suppliers rather than doing it self. Many experts are arguing that offshore outsourcing will harm the U.S. economy than it will benefit the American people in the long run, while advocates can also list a bunch of benefits over adverse. However, the practice of offshore outsourcing has been going on for decades, and it wasn’t resulting as opponents’ claimed. Instead,
Throughout this paper, I use the term “overseas outsourcing” loosely to refer to any service outsourcing to countries outside the border of the United States. The lower cost of living in many nations provides the required lower cost labor for outsourcing to be profitable. Different time zones also allow for work to be accomplished 24 hours/day. The
Outsourcing is the contracting out of an internal business process to a third party organization. The term "outsourcing" became popular in the United States near the turn of the 21st century.(6) Outsourcing is big business today even for small businesses. Like every business decision we are faced with the advantages as well as the disadvantages of relocating part or all of a business. Outsourcing is one of the fastest growing trends in business as large-scale organizations have latched onto outsourcing due to the almost immediate savings and quality improvement. (1)
outsourcing, especially offshore, may bring a smile to your face. For computer programmers, call center workers, or factory workers the reaction is likely to be more negative. The primary pro is that outsourcing jobs outside of the U.S. may help to
Outsourcing, or the movement of internal jobs to an international location, is one of the defining processes of business growth and economic management in the twenty-first century. However, its many benefits, such as cheaper labor costs and greater production rates, also cause a wide range of problems worldwide. As outsourcing becomes an increasingly popular economic option among developed nations, to what extent should outsourcing continue to be adopted in the United States?
Outsourcing, and in particular offshore outsourcing, is absolutely necessary and helps our country 's economy. Outsourcing helps a company focus on those things it does best and hence increase its "top line" revenues while reducing costs. Outsourcing has provided organic growth to the United States corporations and enabled them to compete more effectively in global markets. This paper seeks to explore what outsourcing is, what the difference between outsourcing and offshoring is, what effects it has on individuals, firms, countries and the world as a whole, the controversy surrounding outsourcing, trends of outsourcing and the necessity for it.
There are so many reasons for outsourcing which is the better service, improving organisational efficiency, access to new technology, reduced IT cost, & an ability to refocus in-house staff on higher-value work. The outsourcing option has two main types, first one is
Outsourcing is a practice in which an individual or company performs tasks, provides services or manufactures products for another company. The term itself is often referred to as offshore outsourcing, for the purpose of this essay we will like to talk about the export of labor and manufacturing by Apple Inc, Nike and Walmart to companies outside of the United States. Outsourcing has three main advantages, let us talk about a few of the reasons why a company will decide to outsource verses insource.
In the past decade the topic of outsourcing has become a heavily debated subject on if it is ethically correct to outsourcing jobs to foreign countries. Outsourcing has become more and more an option for many companies and not just an economic fad. The decision to outsource is a difficult one for any company to make because there are many advantages and disadvantages to consider. The decision to outsource affects many people, communities, and industries so if a corporation decides to outsource they must consider how it will affect human dignity, the common good of the economy, and subsidiary.
Outsourcing refers to hiring an outside, independent firm to perform a business function that internal employees might otherwise perform. Many organizations outsource jobs to specialized service companies, which frequently operate abroad. The outsourcing trend stands to continue; the latest wave of outsourcing impacts the information technology field. IT outsourcing includes data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.2
What had begun as a much touted strategy to cut down on customer service costs seems to have lost steam in just a little over a decade. Outsourcing to overseas call centres in Asia was looked upon as a smart move by businesses hoping to cash in on the lower labour and infrastructure costs in some of those countries. But things seem to have come a full circle as many reputed companies have done an about turn in their stance and are now packing up their overseas ventures and are headed back home – as is evident from the resurgent re-shoring trend.
Offshore IT outsourcing involves sending certain types of Information Technology work overseas to be completed by independent third parties. IT outsourcing involves sub-contracting certain information technology functions to independent, third-party companies or individuals, instead of keeping those functions in-house. Outsourcing can include anything from a company outsourcing all of its data storage needs because it does not want to buy and maintain its own data storage devices, to outsourcing a very small and easily defined service, such as disaster recovery or data storage. Most large organizations only outsource a portion of