The Negatives And Positives Of Offshoring

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In this paper the negatives and positives of offshoring are discussed. Offshoring has become a way of life for many businesses. It is widely accepted that offshoring is a strategic business decision. Many organizations are taking advantage of these opportunities because of the benefits to them and their customers. In order to compete with other companies many businesses are finding it necessary to outsource to other countries. Offshoring has produced some economic benefits but it has also created problems such as, work performed in remote areas that fail to meet quality standards, exploitation of workers, and lower environmental standards, especially in developing countries. These standards may damage the local environment or pose health…show more content…
The offshoring of jobs and infrastructure became a significant factor in global economic development in the mid 20th century (In Encyclopaedia Britannica, 2015). Communication was limited in earlier times but the release of certain markets has made it easier for companies to establish and outsource throughout the world. The Internet has made available many resources and easy access to information and environments. With the recent downturn in the economy, there are many concerns regarding job stabilization in the U.S. Lower wages combined with highly skilled workers in a slow economy is attractive to corporations trying to keep their costs down. Countries such as India and China possess qualities that allow them to provide sets of goods and services that are superior to other countries, and allow for competition with other nations. For years the U.S. has seen explosive growth in the offshoring of services to many locations around the world. Many organizations are taking advantage of these opportunities because of the benefits to them and their customers. In order to compete with other companies many businesses are finding it necessary to outsource to other countries. Offshoring has produced some economic benefits but it has also created problems such as, work performed in remote areas that fail to meet quality standards, exploitation of workers, and lower environmental standards, especially in developing countries. These
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