ipl-logo

The Controversy Of Offshore Outsourcing

530 Words3 Pages

Offshore outsourcing is the work completed by people in foreign countries. In today’s world, many companies have been passing the jobs to firms in other countries. Although offshore outsourcing has usually been applied in the manufacturing industry, it has also been used in the service industry lately due to state-of-the-art technology, and worldwide information accessibility. Offshore outsourcing raises a number of controversy and has become a hot topic for debate. Many people believe that offshore outsourcing helps companies to handle challenging situations when there is a shortage of experts in certain process. However, offshore outsourcing is not a viable business strategy for companies because it increases risk to expose confidential data, arises hidden costs and legal problems as well as occurs poor communication between outsourcing provider due to lack of culture understanding. …show more content…

According to study done by the Identity Theft Resource Center (ITRC), the number of data breaches cases in the United States reached 783 in 2014. Losing private data such as name, housing address and phone number might cause consumer to fear. When company damages its consumer confidence, a direct impact on company’s revenue is likely to occur. K logix LLC, one of the leading data security company, stated that in 2012, a $1 billion company is expected to lose 6% revenue due to data loss in its new report "The Real Cost of Data Loss", approximately $6 million revenue. Besides, it also can get the company into trouble with the regulators. Many big projects may need to hold on and it will slow down the company’s operating activities. Thus, offshore outsourcing greatly increases the chance of revealing the private data in the

Show More
Related
661 Words | 3 Pages

In order to determine the whether an outsourcing activities would have a positive or negative impact an evaluation of the activity should be undergone. This evaluation examines the required coordination, strategic control, and intellectual property characteristics of the activity (Chase & Jacobs, 2013, p.444). The required coordination aspect examines the difficulty to complete the activity with limited interaction due to geographical locations. Outsourcing an activity that would result in a large amount of back-and-forth exchange would not be wise to proceed (Chase & Jacobs, 2013, p.444).

Read More
713 Words | 3 Pages

Focus on Core Areas: Another advantage for outsourcing your business it would free your energies and enable you to focus on building your business more, it allows you to invest in research and development and move on to providing higher value added services. What this means it’s that outsourcing allows you to improve your business and allows you to take bigger steps. Levelling and Keeping the Game Rolling: For small businesses that do not have enough money to support in-house services, unlike larger companies, outsourcing can be a saving grace and can help them act “big” by providing them access to technology similar big businesses and other perks on expertise larger organisations or businesses carry. For example your business is small and across your business there’s a bigger business by outsourcing your business you can get accessed to similar technology as them which will make them see your company is

Read More
553 Words | 3 Pages

This industry has touched base in the United States, Africa, and many other countries. Many different braches of industries and companies like the Computer Science Corporation and Intercomp (Russian company) have all taken an interest in outsourcing and is now leading outsourcing

Read More
894 Words | 4 Pages

This is because the company outsources professionals that they may require in the running of their company, without having to go the tiring face of training professionals to undertake these tasks. Outsourcing also offers lower regulatory costs this because offshore workers are paid less and also significantly lowers regulatory costs for programs such as unemployment insurance. There are challenges experienced in outsourcing leads to bleeding of in house workforce since it creates a sense of uncertainty for them they therefore live with a lot of fear and thus may not be in a position to deliver for the company. Selecting the right service provider may pose as a challenge this may lead to frustrations since the selected provider may not make the cut. There are also legal issues that emerge leading to legal tangles and lack of understanding of the

Read More
675 Words | 3 Pages

The growth of outsourcing has spurred a contentious debate whether outsourcing is the sole reason the manufacturing sector is losing jobs, and if, in the end, it is better for the average consumer. In the article Toward a Progressive View on Outsourcing, written by Sarah Anderson, John Cavanagh, Jeff Madrick, and Doug Henwood in 2004, their stance is that outsourcing of manufacturing jobs is not the only problem, but also the outsourcing of service sector jobs, and that outsourcing will have a largely negative effect on the everyday life of the average American. Every author has substantial qualifications, including “Sarah Anderson [being] a global economy project director and John Cavanagh [being] the director of the Institute for Policy Studies” (Anderson 23). Meanwhile, In Defense of Outsourcing – written in 2005 – Timothy Taylor takes a conflicting view. He believes that outsourcing benefits the Unites States’ consumer, and any negative effects are offset by other factors.

Read More
913 Words | 4 Pages

For operational purposes, the company collects and stores confidential information about their customers, employees, suppliers, and vendors. For purposes of their rewards program, the company collects sensitive and confidential consumer information. Although security measures and information technology systems have been put in place to ensure secure transmission and storage of confidential information, security breaches, computer viruses, or even human error can occur. Any of these events could cause data to be lost or stolen, as well as disclosed and used with malicious intent. Such occurrence could lead to litigation, fines, increased security costs, and damage to

Read More
177 Words | 1 Pages

On the contrary a sceptic view comments that actually transnational corporations are still primarily situated in their home nations. Therefore individual countries are unable to tax transnational companies the same amount as national companies under the worldwide approach. Furthermore, sceptics argue that investment in lower economically developed countries leads to increasing marginalisation, as the gap between the rich western and northern societies increases as they profit from the cheap labour and reduced restrictions on farming, and human rights. McDonalds is a perfect example in the exploitation of LEDC’s. Illustrated, as cows are no longer sourced from North America, but rather, South America, were strict regulations are not upheld.

Read More
309 Words | 2 Pages

America’s unmerciful actions have made this country into a scandalous and despicable country. America’s outsourcing has caused immense misery to the people of those countries. In addition, another great problem America should deal with is poverty. In the U.S. it is claimed that people can seek into getting help financially; nevertheless, their help isn’t stopping the number of people living in poverty from increasing. America’s claim of being a perfect country is completely contrary to the facts of the outsourcing China, India, Mexico and the Philippines, and the poverty rate in America.

Read More
805 Words | 4 Pages

Offshoring

Read More
1724 Words | 7 Pages

1. Introduction Nowadays, information security becomes an important thing for the organization because the data and information is one asset that has a high economic value. This is demonstrated by the many security breaches continues to increase, both in terms of the number of incidents as well as financial losses. In 2014, PWC's survey stated the number of incidents of security breach incidents as much as 42,800,000 or 48% greater than in 2013, while the total financial losses increased by 34% compared to the year 2013 (pwc.com, 2014)

Read More
999 Words | 4 Pages

A transnational corporation is a very powerful actor with a significant foreign direct investment and physical operations in two or more countries. While these corporations have always existed in the world economy, they have become even larger over the past few decades, leaving many to wonder if they are gaining too much power. As with any powerful entity, people have begun to ponder whether these corporations are villains or heroes in the world economy. For some like consumers, companies, and host-country/world economies, the global corporations are heroes. While for others, like workers in poor countries, the environment, and local businesses, they are villains.

Read More
954 Words | 4 Pages

Outsourcing is one of the numerous resultants of globalization. Companies from different nations (by and large created nations) outsource their fabricating, marketing, and other back end tasks to other nations. This demonstrates to be cheaper for them as there is a tremendous money distinction between the two nations. Numerous times, companies get to total their work in fair half the cost of what they utilized to pay already.

Read More
1050 Words | 5 Pages

Literature Review on Fundamental Theories IT outsourcing is a topic that not in short of theories. During the last 3 decades, a large amount of empirical work across the last three decades has been guided by three main categories of theories. Those theory groups further developed into different schools which are the base for analyzing the impacts of outsourcing activities. In this research, empirical work based on three most important theories from economic (Transaction cost theory), strategic (Resource- based theory) and social category( relational/ social theories ) were selected for an in depth discussion. No claims are made that any one theory outperforms others.

Read More
1192 Words | 5 Pages

Shiva Chhetri Mariya and Carli Amber Randall 9:00-9:50am 03/02/2018 OUTSOURCING IS GOOD Specific Purpose: To persuade my audience that outsourcing is a good practice and is also beneficial to the American market. Central Idea: When talking about outsourcing the general consensus seems to be that it is a bad practice and is non-ethical. However, few understand the real benefits that come from this practice past the idea that it is a taboo in our country.

Read More
1162 Words | 5 Pages

Making a good business decision doesn’t always mean it is the best possible decision. Economic benefit is not the most important thing. We need to hold everyone else’s wellbeing and the state of our planet in high regard. We need to be concerned with the activities that are taking place to accomplish the outcome we are seeking. Outsourcing may be a smart economic decision, but we need to investigate it.

Read More

More about The Controversy Of Offshore Outsourcing

Related Topics

Open Document