Outsourcing And Offshoring Essay

Outsourcing And Offshoring Essay-43
Reasons for outsourcing include: Note that you do not need to outsource in order to offshore.Captive offshore units are set up to leverage the benefits of offshoring without having to outsource to vendors.

Reasons for outsourcing include: Note that you do not need to outsource in order to offshore.Captive offshore units are set up to leverage the benefits of offshoring without having to outsource to vendors.

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Risks associated with outsourcing can largely be attributed to the vendor's lack of familiarity with the client's business.

Another risk is a lack of alignment of long-term business objectives of the client and the vendor.

Offshore outsourcing combines the benefits of outsourcing, such as easier resource ramp up and ramp down, and more specialized skills; with the benefits of offshoring, such as lower costs and higher productivity.

In the past decade and a half of increasing globalization, offshoring has been the fastest growing segment of the outsourcing market.

Politicians and laid-off workers often blame offshoring for "stealing jobs".

Outsourcing And Offshoring Essay

Most economists, however, agree that offshoring lowers costs for companies and passes on benefits to consumers and shareholders.

The worldwide economic recession has forced companies to explore all options to increase efficiencies and cut costs.

Companies are getting increasingly comfortable outsourcing (as well as offshoring) larger parts of their businesses as they realize they are not core.

It is also possible to offshore work but not outsource it; for example, a Dell customer service center in India to serve American clients.

Offshore outsourcing is the practice of hiring a vendor to do the work offshore, usually to lower costs and take advantage of the vendor's expertise, economies of scale, and large and scalable labor pool.

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