...International Bus Mgmt Victor Ebong Turn-in September 13, 2011 Offshoring & Outsourcing 1. Explain outsourcing, offshoring, and nearshoring and give the benefits/costs of each. Why are the benefits of offshoring being questioned more recently? (Reading 1) * Outsourcing- The farming out of work or certain duties to an outside organization. It can be to a company outside the country but in most cases when termed “outsourcing” it is being done within the country. The benefits of this are that jobs are not being lost in a particular territory or country and the work is being done at a more cost effective and efficient rate * Offshoring- Is the wholesale shifting of corporate functions and jobs to overseas territories. This may not necessarily mean shifting of the work to a different organization but rather shifting work to organization’s subsidiaries abroad. * Nearshoring- Is a concept similar to offshoring whereby companies shift operations, often IT related to foreign countries that are close to their own. The major reason behind this is that while gaining the labor cost advantage, many of the same languages are being spoken of the parent corporation. Additionally, these operations allow for travel on short notice without jet-lag. * The benefits of offshoring are being questioned now more than ever because of the extremely high unemployment rates here in the US. Many critics believe that those Americans out...
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...Tax Havens pull up socks in ‘transparency’ era The great ‘subprime’ crisis has had its share of fallouts over past 24 months; yet there is a silver lining emerging from under the dark clouds which has the world order gearing up for a brand new era of financial discipline and enhanced regulation. Ironically, one of the positives borne out of the recent economic upheaval has been staggering focus on ensuring robust transparency standards in tax matters. Before delving further into how tax transparency and information exchange are critical for sorting financial disorder across economies, let me try and explain the concept of ‘money laundering’ and how the absence of strict standards in tax discipline have abated this menace. This also helps putting in perspective the role that the international tax policy, in tandem with other non-tax measures, plays in combating tax evasion, whether with or without aid of money laundering. What’s the color of money!! Money laundering is loosely used to describe ‘washing’ of unaccounted or illicitly sourced money through a cobweb of complex financial transactions, usually involving more than one jurisdiction. The objective of the process deployed to ‘clean’ the money is to hide either the ownership or the destination of such funds. A typical ‘laundering’ scheme could see three stages: a) Placement stage – at this stage, the objective of stakeholders is to move the illicit funds away from source location; sources of such funds can be...
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...Swiss Private Banking Table of Contents: I. Introduction: 1) Economy of Switzerland; 2) Overview of Swiss Private Banking Sector; II. Strengths and Opportunities of Swiss Private Banking: 1) Privacy; 2) Protection and Safety; 3) Stability and High Quality Standards; III. Weaknesses and Problems that Swiss Private Banking is facing: 1) Dependency on socio- demographic factors; 2) Shifting of wealth concentration; 3) Speed of recovery of markets; 4) Threat to offshore banking; 5) Hard to ensure sustained profitability; IV. Offshore banking in the light of current financial crisis V. Differences in the way different sized banks were effected: 1) Megabanks; 2) Small – medium sized banks; VI. Strategies adopted by private banks after financial crisis: 1) Credit Suisse; 2) UBS; VII. Conclusion Switzerland is one of the most stable, modern and highly developed economies in the world nowadays. Percentage of Swiss Workforce by Sector of Economy is as following: - 1960: Services (39%); Manufacturing (47%) ; Agriculture (15%) ; - 2008: Service (73%); Manufacturing (23%); Agriculture (4%). Economic history of Switzerland is characterized by steady movement to higher productivity industries and services. Traditionally, the Swiss economy used to ran as calmly and soundly as a Swiss clock, well-oiled by the money inflows to Swiss private banks. The country of Switzerland has a small territory compared to surrounding countries and...
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...outsourcing is an attractive proposition, users of outsourcing services should give careful consideration to thepros and cons of outsourcing while receiving outsourcing services from outsourcing destinations such as India, China, the Philippines, and Brazil, etc. Sure, outsourcing is a way to save money, but there can also be unexpected costs. The decision to outsource is certainly not one that any business or non-business organization should enter into lightly. To arrive at the right decision, users of outsourcing services should analyze the following advantages and disadvantages of outsourcing, as only they are in the best position to ascertain whether a particular outsourcing service or outsourcing services should be outsourced to an offshore outsourcing vendor. The most significant advantages of outsourcing are: Cheaper manpower and outsourcing Manpower is possibly the most important resource in any company, and is also the constant resource that come at a high cost. For this reason, small and large companies undertake outsourcing services to India of various types. Professionals in outsourcing destinations such as India and the Philippines have a much less cost to the company, both fixed and variable, as compared to the same professionals in the West. Often, these workers are not unionized as well, which further lowers manpower costs. A major advantage of outsourcing services to India is that India has wide spectrum of outsourcing vendors offering every price point to...
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...endangered species and the health of the American people. Oil companies already hold 5,500 offshore leases that are not being used. I do not know why they need to occupy more space, when they can use what the government has allowed them to use. Now, I do agree changing to solar and wind powered fuel sources will require research and additional funding, however those fuel sources are more eco friendly and in the long run may leave the world in a better position. I must admit, sometimes I fall in to a mindset that is commonly known as stereotyping. As explained in this book “The Art of Thinking”, by Vincent Ryan Ruggiero, chapter 3, a stereotype is a fixed, unbending generalization, irrationally maintained. I have fallen in to this on many issues; I do not believe that my stance on off shore drilling is an issue of stereotyping. I have reassured my stance by reading and researching this stance. As stated in a USA Today article (Jervis, Welch, & Wolf, 7/14), “When oil is brought up from beneath the ocean floor, other things are, too. Chemicals and toxic substances such as mercury and lead can be discharged back into the ocean”. The oil and chemicals are harming sea mammals and the water they live in. The other problem off shore drilling is the chance of oil spills. In April 2010, the BP oil company encountered an oil spill in the Gulf that lasted for about 3 months. Chemicals from offshore drilling combined with oil from spills have had an effect on the food we eat. Sea food lovers...
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...Competitive Advantage: Global Delivery model Operationally Infosys’s competitive advantage is its Global Delivery Model. Infosys, started off by provided onsite service to its global clients. Later in order to cut costs it began to complete projects at its Indian offshore development centers and then implement them at the clients' places. This posed several challenges. Software development is a highly iterative process and as there was no service provider at the clients' locations, it led to a slowdown in the progress of projects. Frequent changes and miscommunication also increased the delay in completion of projects. This led Infosys to adopt the Global Delivery Model (GDM), which was based on the principle of taking work where it could be done best in an economical manner and with the least amount of acceptable risk. The process architecture of GDM helped software companies to deliver high quality solutions while executing a number of engagements from multiple locations. However the GDM model has become and industry norm and is no longer a sustainable advantage. Infosys is now developing a new framework called the “collaborative model would involve distribution of various aspects of a project based on the competencies of each center, thereby improving and speeding the delivery process. The model makes use of talents and skills from different parts of the world, to deliver various components of the project. For example, software architecture would be done in one...
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...Indian Black Money Abroad In Secret Banks and Tax Havens Second Report Of The Task Force on the steps to be taken by India Members Shri Gurumurthy, Chartered Accountant, Chennai Shri Ajit Doval, former Director Intelligence Bureau, Delhi Prof R.Vaidyanathan, Professor of Finance Indian Institute of Management, Bangalore Shri Mahesh Jethmalani, Senior Advocate, Mumbai Submitted to BHARATIYA JANATA PARTY 1 I. The First Interim Report The first Interim Report of the Task Force appointed by the Bharatiya Janata Party was released to the public on 17-04-2009. Afterward different world governments, particularly those in the West, have increasingly begun targeting tax havens and intensely began pursuing black money. The US, and France particularly began a huge campaign against the evil of black money. The estimates black money lodged in tax havens by global financial institutions like the International Monetary Fund reached as high as $18 trillion. The instability in the global financial order itself was traced to the evil money. So the issue has now acquired a totally different dimension. In the first Interim Report, the Task Force had suggested broad national and global strategy for dealing with the menace of black money out of the country. The substance of the recommendations of the Task Force in the First Interim Report is summarized here: Global Strategy: • Creating a powerful public opinion and broad national consensus on the issue. Those who do not...
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...“I confirm that this assignment represents my own work and where quotations and/or ideas have been utilized from other sources these have been acknowledges and referenced accordingly.” Assignment I Question 1 Alliance Bank (Bahamas Ltd) is an established offshore bank with an international presence, through a network of subsidiaries, branches and representative offices in over 15 locations. The referenced branch is located in jurisdiction of The Bahamas. A full range of banking and related financial products and services are offered to clients including but not limited to, bank accounts, wire transfers, cash deposits, and credit cards. Money laundering can be defined as the process of disguising or concealing illicit funds to make them appear legitimate. This is achieved by the launders disguising their identity and or distancing themselves from the illicit activity that would have produced his property. It is imperative then that MLROs fully appreciate the vulnerabilities of their Bank’s particular products and services in order to be able to implement systems to prevent exploitation, and be able to properly evaluate unusual and potentially suspicious activity. The core characteristics and vulnerability of the products and services previously mentioned, from the perspective of anti-money laundering are as follows: Bank Accounts: Bank accounts are the entry point into the financial system. Once this is achieved the launderer has access to a wider network of vehicles...
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...Goodbye Bank Secrecy, Goodbye Switzerland From start of 2012 to May 2013, the number of foreign owned Swiss banks has fallen from 145 to 129(though it remains the biggest centre for global offshore wealth with $ 2.2 trillion i.e. 26% of the market, which was 27% in 2012). Example:- Lloyds Banking Group, Commerzbank, etc Reasons• Recent shake up in Europe’s economy • In 2012, one-third of banks had fund outflows • One bank in 6 recorded losses Hence many banks are reviewing their geographical footprint, specially in the offshore markets. Moreover, a combination of government actions from the US & EU and the increased regulatory pressure is likely to trigger more such changes, because it will only make it a more costly affair to do business. Smaller players will be forced to close or to merge with larger banks. Switzerland will have to develop new products and services to attract foreign clients, now that banking secrecy argument has been solved in the recent. Air-Asia to focus on India’s under-utilised airports Budget airline carrier Air-Asia (which will launch later this year) is looking forward to:• Add 10 aircrafts annually • Focus operations on country's under-utilised airports as a part of expansion plan • To focus on South India first before expanding operations in the rest of the country The success will depend a lot on the cost structure & the marketing, says CEO Air-Asia. They are hopeful of achieving scale through lower-priced tickets & cutting costs by offering...
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...Sign In ✉ Mail ⚙ Help . . .. . . . . . . .. . . Mon, Feb 9, 2015, 11:18AM EST - US Markets close in 4 hrs and 42 mins . . . . Recent. . . Quotes you view appear here for quick access. .. . . ... Finance Home My Portfolio My Quotes News Market Data Yahoo Originals Business & Finance Personal Finance CNBC Contributors . . . .. Recommended Games More games » . . Compare Brokers .. . Leaked List Shows HSBC's Swiss Arm Helped Putin Allies, Drug Lords and Fugitives Hide . Bloomberg By David Kocieniewski 1 hour ago . ˠ ➕ ✕ . . .... . .. .. (Bloomberg) -- The private-banking unit of HSBC Holdings Plc made significant profits for years handling secret accounts whose holders included drug cartels, arms dealers, tax evaders and fugitive diamond merchants, according to a report released Sunday by an international news organization. HSBC is among a handful of banks to face criminal prosecution in recent years for its role in a Swiss banking system that allowed depositors to conceal their identities, and in many cases dodge taxes or launder ill-gotten cash. The report, prepared by the Washington-based International Consortium...
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...Eric Newton 11/29/14 To Offshore or not to Offshore Outsourcing is a method that is becoming more of a normal business technique each and every year. The root definition of outsourcing is to transfer different operations of business to outside suppliers that provide lower costs. Examples of this would be companies giving an independent accounting firm the right to maintain their books because it may be cost beneficial as opposed to hiring an accounting department. A real life example would be Apple obtaining computer chips from their rival Samsung instead of making their own. In the last couple of decades, many more companies have been utilizing a different form of outsourcing, that is offshoring. Offshore outsourcing is essentially just outsourcing, in different countries where the quality of work may be better or cheaper. Larger companies typically use offshore outsourcing because the cost of transporting items or products overseas wouldn’t seem as material as would with a low-income company. Some different types of offshore outsourcing are manufacturing, research and development, accounting, human resources, and more (IWDRO). One of the more common types is manufacturing, and it is also one of the more controversial because some major companies such as Nike have been known to take advantage of the cheap labor overseas by not obliging to the human rights standards. Is it ethical for companies like Nike to overload all of the dirty work (manufacturing)...
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...Case Study Why the telecoms industry is doing business in RMB Telecoms equipment and handset manufacturers like Telco – the representative but fictional example in this case study – recognise that they can only stand out in a tough sector by competing on an international scale. This increasingly means doing business in high-growth emerging markets like China and leveraging RMB to gain that vital competitive advantage. Background Telco, with its Head office based in London, began life as a manufacturer of wire-line equipment for the Western European aerospace sector. Following the privatisation of national telecoms operators from the late 1980s, it refocused its business to supply carriers in Europe and the US. Telco has been an HSBC client for more than ten years, after finding that domestic banks could not match its international expansion strategy. HSBC’s global network supported its exports growth across new markets by supporting all Telco’s export invoices. Rolling waves of telecoms deregulation saw Telco and other suppliers enter the mobile handset market in the 1990s, attracted by the significant growth opportunities. The intense competition and tightening margins in equipment supply – not least the demand from emerging markets – saw Telco make its first trip to China on a sourcing mission for basic components. Building a business In China At the company’s request, HSBC relationship managers helped guide Telco’s entry into China by working with professional advisors...
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...Disadvantages of outsourcing: the disadvantages of outsourcing especially offshore outsourcing mainly centralizes on the real-time information and data sharing. It greatly affects the information that is being shared to the main office to and from the business outsource. Outsourcing has a great risk in lack of proper communication and cultural differences. Cultural barriers will greatly affect your most important resource, your man-power. Data and idea theft is also a great risk factor since outsourcing is basically investing your ideas and data to another company. Fraudulent claims of your company will not be that strong especially if the outsourced country is continents away both from where you are and the laws they have in the matter. Lack of control as to the outsourced people would definitely be of a huge factor because your company is not actually controlling the outsourced people since they are employed by the outsource company they are the one who gives the ultimatum to the man-power they have employed. So with this the expected outcome that your company needs are not always reached and quality of service that they provide may not be of what you have set for them. It also would be very time and asset consuming as you would need to find an affordable and high quality service provider. Instead of precious time being spent on other important matters like improvement of service in your company and ideas where the company can invest their time and assets in, it...
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...TOWARDS THE BEGINNING OF TWENTIETH CENTURY,WITH THE ONSET OF MODERN INDUSTRY IN THE COUNTRY,THE NEED FOR GOVERNMENT REGULATED BANKING SYSTEM WAS FELT.SO IN 1969,INDIAN GOVERNMENTR TOOK THE HISTORIC DECISION TO NATIONALISE 14 BIGGEST PRIVATE COMMERCIAL BANKS.THE NEW GENERATION PRIVATE BANKS HAVE NOW ESTABLISHED THEMSELVES IN THE SYSTEM AND HAVE SET NEW STANDARDS OF SERVICES AND EFFICIECY. WHILE IT IS QUITE EVIDENT THAT INCLUSIVE GROWTH IS IMPERATIVE FOR ACHIEVING THE EQUITY OBJECTIVE,WHAT IS PERHAPS,NOT SO OBVIOUS IS WHY INCLUSIVE GROWTH IS NOW CONSIDERED ESSENTIAL EVEN TO SUSTAIN THE GROWTH MOMENTUM. IN MANY OF THE EMERGING MARKET ECONOMICS,THE MAJOR OF THE CHUNK POPULATION IS IN RURAL AREAS.SIGNIFICANT INCREASE IN DEMAND FOR MANUFACTURING AND SERVICESSECTORS HAS TO COME FROM RURAL POPULATION.THE AVERAGE MONTHLY PER CAPITA CONSUMPTION EXPENDITURE IN URBAN AREAS OF COUNTRY IS ALMOST DOUBLE THAN OF ITS RURAL AREAS.THE GROWTH IN AGRICULTURE IS NECESSARY TO KEEP MANUFACTURING PRICES UNDER CHECK,PROVIDE FOOD SECURITY AND KEEP INFLATION UNDER CONTROL. LIMITATIONS ON INCREASING PRODUCTION AND PRODUCTIVITY IN AGRICULTURE ARE DRIVING MIGRATION TO URBAN AREAS,LEADING TO POPULATION PRESSURE IN THESE AREAS AND EXERTING FURTHER STRESS ON EXISTING ON INFRASTRUCTURE. BANKING SYSTEM AND FINANCIAL INSTITUTION PLAY VERY SIGNIFICANT ROLE IN ECONOMY.FIRST AND FOREMOST IS IN THE FORM...
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...negligible and margins and profits hit record lows, a modest improvement was seen in 2010. It seemed at first that this recovery would continue in 2011. But, after a good start, the industry suffered from a difficult second half: markets fell and profits stagnated at low levels. The situation has not yet improved in 2012; another good start was wiped out in the second quarter. Given the continued growth in global wealth, this implies that private banks are failing to capture their fair share of the market. The longer-term structural changes caused by the crisis are creating a much more demanding environment for private banks. Slower wealth generation in developed markets means that the growth momentum on- and offshore is shifting to clients in developing markets. Offshore growth has stabilized thanks to ultra high-net-worth (UHNW) and emerging markets clients. To maintain their position, let alone embark on a quest for growth, banks will need to adapt...
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