Offshoring Essay

Introduction

Altia Business Park is a nearshore location in San Pedro Sola, Honduras. The technological park tries to attract customers, especially from North America, to outsource services, products or business processes to their facilities. Every company that considers outsourcing as an option for conducting business has to perform a complex analysis of the underlying dynamics and factors in order to make a beneficial decision for the company. According to … (book reference), this analysis can best be described with the help of the “Sourcing Decision Cycle Framework” (see Figure 9.1).

According to this framework the first and most important question is the “make-or-buy decision”, if the company wants to produce the product or service

Discuss offshoring from the perspective of potential workers in your country. Discuss offshoring from the perspective of potential workers in Honduras.

To the potential workers in the USA, offshoring means they have more possibility to lose their jobs. When a company decide to offshore, it means some of its factories which locate in the USA before will be closed. Because of this, many American workers will be fired. These American companies choose offshoring because of the lower cost of labor in the developing countries. So, offshoring have more bad effects on the low-educated worker compared to the high-level workers. As the workers all need the jobs to survive in America, they totally against

Offshoring benefits the global economy in order to help balance the resource of the whole world. Offshoring could help Honduras to gain greater profits and to give more working opportunities to the local people. According to the article, Honduras is a country which 65% of the population lives below the poverty level, and any employment opportunities in Honduras are rare. In the case, as they could receive a salary of $4,800 per year or more to support their families, they will try their best to become a loyal and hardworking employees in order to get the working opportunities. However, it is not enough for them to just be hardworking. They also need to be well-educated. Obviously, a worker with high ability will be more competitive and will have higher possibility to gain the job. For example, people who could speak fluent English will attract the hirers because it could make them to communicate easier. Therefore, offshoring could help to develop the educational level of people in Honduras. As the sentence shown in the article, Honduras actually has more English speakers as a proportion of population than the average Central American