...University of Maryland, University College (UMUC) Offshore Outsourcing: Reducing Cost, Sacrificing Quality Nick Blasetti AMBA 600 Ralph Masi May 12, 2015 Executive Summary Offshore outsourcing is a growing trend in today’s business world. Many large, fortune 500 companies are sending a majority of their low skilled jobs overseas to reduce labor costs. This process is leading to many negative impacts on consumers and workers. Consumers are now being put at greater risks and experiencing poorer service, while workers are losing their jobs and struggling to find new ones. Workers are also now forced to interact with many foreign employees. The language barrier between domestic and international employees hinders working relationships, and even decreases productivity. Many companies who initiate outsourcing have received negative reactions from employees and reductions in morale. Even with the very apparent negative impacts of outsourcing, companies are continuing to outsource more and more work. The reason: reductions in labor costs outweigh everything else. Companies may be sacrificing their integrity for increased profits, but with so many companies outsourcing, they really have no other choice. Their workers and consumers may be unhappy, but in order to remain competitive they must follow suit. Consumers and workers will be forced to adapt with the changing times by increasing their skills to avoid losing their jobs...
Words: 1922 - Pages: 8
...Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS Gap Analysis: Global Communications University of Phoenix MMPBL/500 David Rollins May 17, 2010 In the last three years Global Communications has faced declining stock prices that have shaken stockholder confidence in the company. Increased competition from the cable industry and their inability to update systems and processes with new technology and contributed to their decline. Global Communications must identify future trends and threats if they want to increase market share and gain a competitive advantage. Gap Analysis: Global Communications In response to the external threats from competitors Global Communication has re-evaluated their current business model and has embarked on a new strategic plan. Whereas this new course may lead them to regain market share they failed to recognize the value of their long term workforce. Global Communications has to take action and respond to the external threats in the telecommunications industry if they are to remain competitive. Whereas these changes may bring success they are full of challenges. Examples of these challenges include implementing the new strategies so they succeed in improving the company’s current position in the telecommunication industry and effectively deal with pending litigation from the Union who strictly opposes the outsourcing of call centers to Ireland and India as this will contribute to laying off employees in the United States. The corporate...
Words: 2111 - Pages: 9
...historical development of outsourcing: the latest fad? Chris Lonsdale University of Birmingham, Birmingham, UK Andrew Cox University of Birmingham, Birmingham, UK Few management practices have attracted as much attention as outsourcing is enjoying at the present time. That firms should aggressively adopt the practice is almost becoming a given, and consultants' Abstract presentations talk of a ``revolution in Notes that outsourcing is just one outsourcing''. The academic literature on the of the means by which the subject has grown in kind. boundary of the firm can be What is often lost in the hype surrounding adjusted. Considers various other means such as conglomeration the concept, however, is that outsourcing is and horizontal and vertical just one way in which the boundary of the integration. Focuses on firm can be adjusted in response to changing outsourcing and its place in this economic pressures. Indeed, any history of bigger picture and discusses the history of outsourcing. Outlines the concept should recognise this, as the concerns for managers and gives recent trends in its favour have very much case examples from Rank Zerox been set in the context of a general movement and BP. towards more ``focused'' business strategies. This article investigating the development of outsourcing is in three main sections. First, it sets outsourcing in the wider context of the boundary of the firm issue. Second, it then proceeds to discuss the history of outsourcing, and its place in...
Words: 5110 - Pages: 21
...and Social Science Vol. 4 No. 8 [Special Issue – July 2013] Outsourcing: A Review of Trends, Winners & Losers and Future Directions Zafar Iqbal Lecturer Faculty of Administrative Sciences Kotli University of Azad Jammu and Kashmir MSc. University of Bedforshire, UK. Aasim Munir Dad PhD. Scholar The School of Business & Management University of Gloucestershire Cheltenham, GL50 2RH. Abstract The primary objective of this paper is to analyse the outsourcing trends in last one decade and to forecast the future on the basis of past studies. In this paper concepts and trends about outsourcing has been discussed on the basis of past studies. An extensive amount of literature review has been done to obtain the objective. This paper demonstrates the previous literature and findings. Outsourcing has become inevitable and virtually many of the multinationals are outsourcing to utilise scarce in-house resources. In this research it is being observed that owners of the companies are the prime winners in outsourcing and off shoring situation. Further, a detailed review of literature indicates that along with many other motives cost factor cause major influence in outsourcing decisions. There is an ultimate outcry over the jobs going overseas from industrialized nations such as United States, the UK and the western World. However, the net economic gains for these countries are growing, and outsourcing to an offshore destination will be on the rise for the foreseeable...
Words: 11277 - Pages: 46
...Advantages and Disadvantages of Outsourcing for Outsourced Employee Iman Nuraprianto GLS 470 – 12TW1 Jennifer Zoller Southern New Hampshire University December 8, 2012 Abstract Outsourcing is contracting with an outside party (vendor) to do a particular function. Basically, the function being outsourced is considered non-core to the business. This paper explores the advantages and disadvantages of outsourcing for outsourced employee. The advantages of outsourcing are more experiences, opportunity to get expertise in particular job, and manageable time & planning to the next job. In contrast, disadvantages of outsourcing are low salaries, poor employee benefits and uncertainty for continuing job. This paper describes, even though outsourcing discriminates outsourced employee, there are some benefits for outsourced employee. Advantages and Disadvantages of Outsourcing for Outsourced Employee What is the definition of outsourcing? According to Caruth, L. & Caruth, D., “Outsourcing is the process of contracting with an outside party (vendor) to perform company functions that were previously perform in-house” (2010). Outsourcing has been used by company in difference sector businesses, such as retail, manufacturing, information technology, banking & finance. Medforth argued that “outsourcing support a company to change magnitude in almost every aspects: increase in profits, productivity, business value, business performance...
Words: 2225 - Pages: 9
...Outsourcing in Healthcare Outsourcing in the health care industry continues to grow in an effort to cut the raising cost, to increase efficiency and quality of care by hospitals nationwide. As annual healthcare spending in United States hit $3.8 trillion (Munro, 2014), and aging population in America is increasing with the retirement of baby boomers and higher demands for patient care, the cost of healthcare will continue to grow. In response to increasing cost, many hospitals will employ outsourcing to save money and combat rising costs. This paper will examine outsourcing trends in healthcare. Prevalence and Trends Outsourcing is not a new trend in healthcare. In the past, medical centers successfully outsourced support services, such as construction, IT, translation, laundry services, housekeeping and food services. Today, in an attempt to reduce rising cost of healthcare services, hospitals increasingly turning to outside contractors for patient care and clinical services, such as medical staffing, radiology services, laboratory services and clinical specialties. The clinical specialties most frequently outsourced are anesthesia, emergency department, dialysis services, diagnostic imaging and hospitalist services (Waller, 2012). For information technology, 97% of respondents report outsourcing one or more of these services, such as EMRs, patient satisfaction surveys, help desk, CPU and peripheral maintenance and local IT support (Waller, 2012). According to Modern Healthcare...
Words: 1990 - Pages: 8
...Outsourcing jobs may lead to a weakened economy Anne Onyambu ENG 1000 Ms. Lorrinda Khan November 11, 2011 A popular theory states that something is not worth doing if it earns you less than your hourly wage, imputed or otherwise. For example, if you make $120 an hour and you can hire someone experienced to mow your lawn for $20 an hour then, you should go ahead and pay for the service instead of doing it yourself. This will leave you free to use your time where you can earn $100 an hour hence create more value for yourself and many others. Of course, you can mow your own lawn, but you will be losing a value of $100, if there is an opportunity to earn $120 an hour and can get someone experienced, who earns $20 an hour to do your lawn. This is the essence of outsourcing, to save costs and hence create increasing value for stakeholders in organizations. The prevailing trend of outsourcing to foreign countries has become an issue of major concern of all representations of the common people all over the world. Specifically, in America, outsourcing of American jobs has become a big topic. Many jobs are being outsourced to other countries, like China, India, resulting in job scarcity and leaving the American population unemployed. Outsourcing refers to the practice of contracting with third companies or vendors outside the organizations, usually in another country, to deliver products and services to local customers at a cheaper price. The practice of outsourcing is a...
Words: 1051 - Pages: 5
...Outsourcing Running a business requires many decisions to be made, one decision is whether a company should perform work internally or outsource job duties. Outsourcing is the technique used by companies to reduce cost by transferring portions of work to third party suppliers as opposed to performing the job internally. Outsourcing can be very beneficial in reducing cost, but there are also issues that surround outsourcing in general. In order to understand the benefits of outsourcing, one needs to fully comprehend the issues involved with outsourcing, the benefits that a company may experience from outsourcing, how to truly determine whether outsourcing a specific job is necessary or beneficial, and how outsourcing is relevant in today’s workplace. First, it is important to understand what outsourcing is. According to Robert Handfield (2006), outsourcing, which became a formally indentified business strategy in 1989, can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” (para. 5). Outsourcing, sometimes referred to as facilities management, is the strategy that involves an organization to contract out certain aspects of a business to both specialized and efficient service providers. Handfield (2006 points out that subcontracting and outsourcing, although similar in nature, are different because outsourcing “involves substantial restructuring of particular business activities including, often,...
Words: 1711 - Pages: 7
...Communications situation , the risk for each solution is described and an optimal solution from a numbers of alternative solutions is selected. An implementation plan for the selection solution for the Global Communications situation is described and a metrics to monitor the plan is presented. This paper concludes by reviewing the selected solution to the situation and discussing the expected result. Issue and Opportunity Identification As a result of competition from cable companies, the United States based company, Global Communication (GC) is losing market share and profitability in the telecommunications market. The traded stock value has dropped from $28 to $11 in a two year period and stockholders are receiving diminishing returns (University of Phoenix, 2006). The stockholders have lost confidence in the management. Management is under pressure to renew stockholders confidence by increasing returns on the stock and the traded stock value. Senior management believes it can renew stockholders confidence and be more profitable by reducing its operating costs and providing a wider range of services. To compete with the cable companies, GC plans provide more services by forming an alliance with satellite provider. GC believes that this will give them a wider customer base. GC also plans to reduce it operating cost and increase its profitability by...
Words: 2824 - Pages: 12
...Managing Operations Introduction The report will start with definition of operations management concept. This will be followed by identifying some of the global factors affecting operations management in organisations and the impact such factors have on operations management in organisations and to assess how operations management can contribute to sustainable business activities . The second part of the report will describe how project management techniques contribute to the development of operations management and how project management techniques can be used to improvements the management of business operation in a multinational organisation. The effectiveness of business operations to organisational goal of Shell Petroleum will be discussed As operation management entails risk, the risk management techniques that can be applied to the management of a business operations (Shell Petroleum) and how to evaluate the risk to business operations in global markets will be discussed. How risk to Shell Petroleum operations be minimised for a business functioning in a global market will be discussed The technological infrastructure that supports operations management of Shell Petroleum will be identified and the contribution of information technology to it operations management will be analysed. The benefits to operational management of implementing technical solutions will also be analysed . The contribution of information technology to operations management of...
Words: 2887 - Pages: 12
...which has created a more diverse and technological savvy students who need more stimulation in a classroom environment compared to years past. Introduction Communication in the workplace has gradually become more advanced and has created the missing links between cross cultural bridges that once hindered globalization. Michelle will discuss the five types of audiences that all forms of communication must meet. The criteria for communication to be an effective tool in the workplace, she will differentiate between the types of audiences, and the criteria for communication to be used effectively. Last, she will tie all this information into personal day-to-day business situations, by identifying specific trends and the constant need to adapt to cultural challenges and a more diverse workforce Types of Audiences “Knowing who you’re talking to is fundamental to the success of any message. You need to identify your audiences, understand their motivations, and know...
Words: 1004 - Pages: 5
...Demographic Complementarities and Outsourcing: Implications for India By: Mukul G. Asher Professor, LKY School of Public Policy National University of Singapore e-mail: sppasher@nus.edu.sg and Research Scholar Department of Economics National University of Singapore e-mail: amarendu@nus.edu.sg Amarendu Nandy May 2006 Draft – Not to be cited without permission The authors would like to thank anonymous referees, Sanjeev Sanyal, Amlan Roy, Anantha Nageswaran and R. Swaminathan for their useful comments. The usual caveat applies. _______________ This is a longer version of the paper prepared for IMRC 2006 conference on Global Competitiveness through Outsourcing: Implications for Services & Manufacturing, Indian Institute of Management (IIM), Bangalore, July 13-15, 2006. Abstract This paper analyses the implications of differing global demographic trends for India’s competitiveness in outsourcing and offshoring. It also briefly notes the implications of differing demographic trends among the Indian states. The paper argues that demographic complementarities with high-income countries provide India with one-time opportunity to sustain its growth rate and occupy all segments of global outsourcing and offshoring activities. India has used the labor cost advantage to gain reasonable market share in these activities. It however faces serious internal and external challenges in sustaining its international competitiveness, particularly with respect to labor cost....
Words: 9196 - Pages: 37
...Trends in Communication Joseph Celestine University of Phoenix COM 285 HAROLD RICARDO March 15, 2010 Abstract Trends in business communication effectively facilitate communication between employees, business partners, and clients. The roles involved in communication assist an individual in communicating efficiently. The more technology advances, the more elaborate and sophisticated communication becomes. Communication is vital to national defense; it is the means by which the military maintains a cohesive structure. Of the many communication trends found in business working environments, one can expect to find a large number of trends that facilitate business communication. All over the world Communication is the most important aspect of any business. Trends in Communication By addressing the means by which business communication evolves, one can determine the changes that occur in society. Business communication is essential in any business. The changes in communication express how society adapts to trends in business and administrative communication across areas concerning technology, data security, data privacy, customer quality, customer needs, work related data, entrepreneurship, teamwork, diversity, globalization, outsourcing, balancing work, balancing family, legal concerns, ethical concerns, job flexibility, and rapid rate of change (Locker & Kienzler, 2008). Improving business communication is essential in developing goodwill, establishing...
Words: 1168 - Pages: 5
...KARELIA UNIVERSITY OF APPLIED SCIENCES International Business Degree Program Swedish Clothing Industry Global Business Environment November 2013 Introduction The distance between people in the world is decreasing. In stores in Sweden we find goods from all corners of the world. We are intertwined in a world of mutual dependences and it is what we now call globalization. Economic globalization is a historic process and the result of human innovation and technological development. The economies in the world are integrating, particularly through trade and financial flows, but globalization can also involve movement of people and labor, as well as knowledge and technology across international borders. This means that countries can specialize and produce what they are best at. Countries across the world wills also have access to more capital, better technology, cheaper imports and major export markets. This does not mean that all countries have access to the benefits of globalization, in the poorest countries, the international community help with contributions. The question is that is globalization a treat or an opportunity? Some believe that the difference between the rich and poor countries only increased with globalization, while others argue that the difference in income or GDP between countries across the world has increased, but it is not the whole truth. Wider measurements of welfare that takes social conditions in the calculation shows those developing countries...
Words: 1826 - Pages: 8
...Running head: Business Communication Trends Paper Business Communication Trends University of Phoenix COM/285 September 26, 2010 Business Communication Trends Communication is an important skill in which organizations depend on it. Locker and Kienzler (2008) mentioned that business use communication “to plan product and services; hire, train, and motivate employees; coordinate manufacturing and delivery; persuade customers to buy; and bill customers for the sale.” Business communication is important for the success of any business. Business and administrative communication are affected by certain trends. Those trends are: technology changes, focus on customers’ needs and quality, legal, ethical and compliance concerns, globalization and outsourcing, balancing family and work, career flexibility, and rapid change (Locker & Kienzler, 2008). Business Communication roles in day-to-day activities Communication in business is a priority on my daily activities at work. I work with trends and analysis to report the quality indicators that are measured on a monthly basis. Every time a measure does not meet the benchmarks, I have to communicate those changes to managers and employees. Managers need to know the trends to ensure employees are following the guidelines that will allow them to be more efficient. The information is given verbally and written. A corrective action plan (CAP) is written down explaining steps-by-steps procedure on the barriers and action plan...
Words: 1044 - Pages: 5
