Outsourcing in Shipping Industry: Rationale and Advantages

help with the proper functioning of the boat or ship. They have specific duties in the operations

“Outsourcing refers to the practice of contracting workers outside of a company or business for work duties or services previously performed by company employees or “in-house”. This practice is also often referred to as offshoring due to the increasingly prevalent use of “non-U.S.” service providers for these outsourced duties. However, strictly speaking, outsourcing can and does refer to the use of contracted labor provided by individuals outside of an organization, but still within the U.S.; whereas when these same services are provided outside the U.S., it is both outsourcing and offshoring.”

(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).

You may have been asked if your job is next with the recent outbreak of shipping American jobs overseas. Lately, all of the corporate talk is about outsourcing and how it’s helping American companies grow, but what is not talked about is how it’s going to effect the American economy in the next few years and what should be done to stop it. Outsourcing is a modern plague that is killing the American dream. Its long-term effect is catastrophically damaging to the American economy and Americans need to step up their educational expectations, skill sets and motivation if they are to keep that long-fought for dream alive.

Throughout time, many things evolve based on current trends. The business world is no exception to evolution. In the world of business, the bottom line is key and wealthy figure heads are paid large sums to bring up profit margins and cut production costs. During the twentieth century, production costs have been cut by the means of outsourcing. Although outsourcing is financially beneficial to large businesses, it has detrimentally impacted the American economy through raises in the unemployment rate, lost countless tax dollars and compromised the integrity of products received.

Shippers Ltd. had the following inventory situations to consider at January 31, its year end:

the general population who lose their occupations should now locate another activity they may not be also fit the bill for as their old employment. these individuals will likewise have more budgetary issues for quite a while which will back off their spending on non-important things. this will hurt the economy in America and additionally bring down the personal satisfaction for Americans.

The corporation, which is “an organization, especially a business that has a legally separate existence from the people who run it,” was born with the formation of the British East India Company in 1600. At the end of the American Revolution, the people of the thirteen American colonies shared an intense fear of the corporation, due to the imprint left on the country from the actions of the British East India Company. These actions included the exploitation of the colonies’ wealth and the domination of all trade coming into and leaving the ports of each of the thirteen colonies. For the entirety of the following century, the American government placed stringent requirements and tight regulations on corporations that emerged within the United

Shipping being such a large industry with over 1.6 million seafarers globally, consisting of both officers and ratings from countries such as China, Philippines, Russia, Ukraine and India supplying the largest number of seafarers to the industry. The number of seafarers have been predicted to grow in the future with an increase in demand for both officer as well as rating.

One impact that companies have using offshore outsourcing ' is the business rivalry, and business rivalry is great. It is imperative since it gives one organization an edge over another. As indicated by Winston Pepito if companies do not use outsourcing they will lose ground against the competition (Pepito).

This authoritative paper presents a broken billing process for the SeaCube Container Leasing Company and presents a solution to fix and improve the process. It has been written in order so the management of SeaCube Container Leasing Company can support and implement the proposed improvement to the billing process. This paper will cite references in adherence to the APA writing format for clarity.

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

The concept of outsourcing originate from the American terminology “outside resourcing”, meaning to get resources from the outside.1

Green, Aaron. (2007, September 17). “Part 1: Offshoring basics: definitions, benefits, and challenges.” Retrieved from www.boston.com/jobs/on_staffing/091707.shtml

Every firm would love to invest in shipping industry due to large profits involved. However this would seem easy but practically it is lot more difficult and virtually impossible to establish in container line business. The problem pertains to large capital investments in form of vessel and container procurements and risk of operating vessels. Even if we take the examples of biggest companies