The Controversy Of Offshore Outsourcing

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.

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