Turnkey Services is an ASP that offers payroll and tax preparation services for hundreds of businesses in the Midwest. The firm is considering a major expansion into accounting and financial services and is looking into the possibility of supporting this move by hiring IT subcontractors in several foreign countries. Turnkey’s president has asked you to help him reach a decision. Specifically, he wants you to cite the pros and cons of offshoring. He wants you to present your views at a meeting of Turnkey managers next week. How will you proceed

Turnkey Services is an ASP that offers payroll and tax preparation services for hundreds of businesses in the Midwest. The firm is considering a major expansion into accounting and financial services and is looking into the possibility of supporting this move by hiring IT subcontractors in several foreign countries. Turnkey’s president has asked you to help him reach a decision. Specifically, he wants you to cite the pros and cons of offshoring. He wants you to present your views at a meeting of Turnkey managers next week. How will you proceed

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 6.3A

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Case Summary Businesses have long sought new and innovative ways to lower their costs for producing goods and services. Sometimes their quest includes buying raw materials and equipment from overseas suppliers for lower prices. Sometimes they might borrow from foreign lenders who are offering lower interest rates than can be obtained domestically. But for the last several decades, at least, the focus has been on moving jobs to countries where labor costs are low. This practice is called offshoring. Indeed, it seems like just yesterday that manufacturers were moving their production facilities to Mexico. The North American Free Trade Agreement (NAFTA) made it relatively painless for businesses to move materials and finished goods back and forth across the U.S. Mexico border as needed. But the good times slowed beginning around 2003 as Mexican wages crept higher and higher. At the same time, though, China began to emerge as the world’s newest low-cost manufacturing center. And for…