Offshoring and Outsourcing Term Paper - 1794 Words

Term Paper The debate of outsourcing or offshoring American jobs rather than utilizing our unemployed citizens has been a highly controversial topic in the past decade. Outsourcing has many advantages to business firms such as lower production costs, lower labor costs, improved quality of work, more time to focus on domestic operations, and increased profits which help stimulate our economy. The opposing view argues that by outsourcing jobs to other countries it is causing higher unemployment in America and stimulating the economies of other nations rather than our own by providing them with jobs, resources, facilities and capital. Though there will never be a universal agreement on this matter both sides do have merit to them and make†¦show more content†¦Companies can now manage foreign partners in any country with use of the internet, webcams, phone conferences, and even the ability to control and monitor finances, bookkeeping, and other operations from computers at th e offices here in America. Another trend America has seen over the past few decades is the shift from manufacturing to services. With the ability to outsource production jobs the American economy has been much more focused on service careers, which are something that can be outsourced to serve foreign customers but will always have a place in the American marketplace since services must be consumed at purchase, meaning to serve American customers the service providers must operate within US borders. The ease of offshoring and the benefits it provides makes the idea of global expansion very attractive, but there are still aspects of offshoring that make the concept undesirable to others. There is large opposition to the idea of outsourcing jobs to foreign countries when there is such a high level of unemployment here in America. By 2015 the number of American jobs expected to be lost to outsourcing since 2000 is 3.3 million according to a recent report by Forrester Research (â₠¬Å"Outsourcing, PBS†). As of October 2010 the American unemployment rate is at 9.6 percent, and the fact that so many jobs are being sent overseas is disturbing to many whoShow MoreRelatedAdvantages Of Outsourcing And Outsourcing1428 Words   |  6 Pagesbarriers. This paper will be centered on the advantages and disadvantages of offshoring and outsourcing. Furthermore, we will discuss some of the factors and trends that are affecting offshoring and outsourcing. Outsourcing vs. Offshoring In order to understand globalization, we have to first learn about some of the common misconceptions. The terms â€Å"outsourcing† and â€Å"offshoring† are used almost synonymously in today’s literature, however, there is a huge technical difference. Outsourcing simply occursRead MoreOutsourcing And Re Shoring Production1732 Words   |  7 Pagescountless occupations that were formerly invulnerable to offshoring to be sent overseas. As globalization advances, the off shoring movement is likely to escalate as well. Nonetheless, numerous manufacturing companies such as Caterpillar, Bosh, and Phillips have disclosed that they will return part of their off-shored production to their home countries.(When Manufacturing moves back 1) Throughout this paper I will discuss the politics of offshoring and re-shoring production as well as reflect on globalizedRead MoreBenefits And Drawbacks Of Outsourcing962 Words   |  4 Pagesits operations to less costing labor. This c onsequently led to these companies seeking employees from developing countries. The outsourcing is an initiative taken by these companies to seek both the skilled and unskilled personnel to offer their services to all industries. The information technology industry has been one of the industries in the U.S affected by outsourcing. For this effect, the New York State legislative bill A. 8284/S. 2317 was endorsed by act on August 1st 2007 (â€Å"The Offshore†, 2010)Read MoreOutsourcing : Outsourcing And Outsourcing1840 Words   |  8 PagesOutsourcing, 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 be tween outsourcing and offshoring is, what effects itRead MoreThe Risk And Benefits Of Outsourcing Supply Chain And Risk Management Essay961 Words   |  4 Pages The Risk and Benefits of Outsourcing Supply Chain and Risk Management. How Boeing 787 Supply Chain Issues Affected Other Industries? Debates between business professionals regarding risk and benefits of outsourcing is becoming increasingly heated with particular focus on risks as unanticipated costs, potential for setbacks, integration difficulties, quality or benefits as minimize overall cost, focus on other business area, meet customer demand and flexibility. However, being prepared, doneRead MoreEvaluating the Pros and Cons of Global Outsourcing3779 Words   |  15 Pagesï » ¿Evaluating Global Outsourcing Introduction Global outsourcing has become a common term nowadays in terms of business as many organizations have been outsourcing, or simply we can say, getting people in other countries to work for them. It is mainly when an organization opens its branch/office in another country and hires people of that country to work for the benefits of their respective organization that is global outsourcing. Organizations from developed countries usually target emerging/developingRead MoreGlobalization and Outsourcing6341 Words   |  26 Pages(The Nobel Foundation, 2001). The quote introduces, in its broadest sense, the issue discussed in this paper. While the general idea of globalization is not our primary focus in this report, one of the most controversial subjects to arise out of the globalization phenomenon, offshore outsourcing, is of particular interest to us. Offshore outsourcing (hereafter used interchangeable with offshoring) has been around for some time now. The pressure to transfer busin ess processes over-seas first cameRead MoreFig 5- Manufacturing Value Added And Employment As A Share Of The Total Us Economy1430 Words   |  6 Pagesoffices abroad. This brings the concept of offshoring. Offshoring, otherwise called offshore outsourcing, is the term that came into utilization over 10 years back to portray a practice among organizations situated in the United States of contracting with organizations past U.S. fringes to perform administrations that would somehow or another have been given by in-house representatives (white collar). The term is just as appropriate to U.S. firms offshoring the occupations of hands on laborers (blueRead MoreEssay about BUSI 613 Journal Review 1 Week 2 31191 Words   |  5 Pages Ferreira, J., Prokopets, L. (2009). Does offshoring still make sense? Supply Chain Management Review, 13(1), 20-n/a., pp 1-5, Retrieved from http://search.proquest.com/docview/221135949?accountid=12085 In this paper I will summarize the article, discuss the purpose intended by the authors, and discuss how this situation relates to the supply chain management theory. I will also suggest areas in offshoring where research done since its publication will enhance the findingsRead MoreOutsourcing: Lets Get It Right Essay1208 Words   |  5 Pagesensure this trust. This paper provides rhetorical analyses of two presentations pertaining to outsourcing. Neither particularly opposes outsourcing, yet each provides information addressing two different outsourcing concerns. Kibbe’s 2004 article â€Å"Outsourcing: the good, the bad and the inevitable† focuses on United States (U.S.) job impact. Van Heerden’s 2010 speech â€Å"Making Global Labor Fair† focuses on human rights impact. Rhetorical Analysis: Kibbe (2004) â€Å"Outsourcing: the good, the bad and