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Offshore Outsourcing

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Top Trends of the Computer Facilities Management Services Industry are Global Standardization, Foreign IT Workers, Cloud Computing and Offshore Outsourcing. An Emerging Issue affecting Offshore Outsourcing is the increased need for more In-house Expertise. This need is motivated by several different factors which include:
I. A decrease in corporate technology spending.
II. The demand for improved customer relations.
III. Public image perception of Offshore Outsourcing.
IV. High attrition rates for highly skilled IT workers.

I. A decrease in corporate technology spending.
One of the major reasons a firm implements Offshore Outsourcing is the expected cost savings associated with hiring foreign workers at a much lower price than local workers. …show more content…
One way this union can begin to reduce the spending footprint on corporate technology is by requiring Offshore Outsourcing partners to provide them (Julie & Shao, 2007). In recent years, corporations have presented contracts to Offshore Outsourcing institutions that would require them to provide Information Technology upgrades, when necessary (Julie & Shao, 2007). With agreements in place, a business can negotiate these services at reduced rates, thereby creating additional saving (Julie & Shao, 2007). Furthermore, with this arrangement in place, companies would expend less resources on IT services, thus allowing them to remain competitive against potential rivals (Julie & Shao, …show more content…
Companies look to reduce production and save money by using Offshore Outsourcing. With the obvious benefits of Offshore Outsourcing, there are several issues that come with this concept. There is a decrease in corporate technical spending. There is a high demand for improved customer relations. There is a public perception that comes with Offshore Outsourcing. Finally, the high attrition rates for highly skilled IT workers. Even though the benefits of Offshore Outsourcing may seem to be appealing to those companies who utilize this concept, many wonder if the benefits outweigh the issues that come with Offshore Outsourcing such as high turnaround, minimum customer service, and the use of substandard technology to mitigate the cost. In weighing the pros and the cons of Offshore Outsourcing, many companies reverting back to in-house expertise to ensure the quality of work IT workers are providing are in the best interests of the companies in which they work for. Whichever way companies decide to go, Offshore Outsourcing provides an essential service for those companies willing to deal with both the positives and the negatives that come with Offshore

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