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Devin R. Lewis.  Outsourcing vs. Offshoring Outsourcing vs. Offshoring  Reasons for Outsourcing Reasons for Outsourcing  Who outsources? Who outsources?

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Presentation on theme: "Devin R. Lewis.  Outsourcing vs. Offshoring Outsourcing vs. Offshoring  Reasons for Outsourcing Reasons for Outsourcing  Who outsources? Who outsources?"— Presentation transcript:

1 Devin R. Lewis

2  Outsourcing vs. Offshoring Outsourcing vs. Offshoring  Reasons for Outsourcing Reasons for Outsourcing  Who outsources? Who outsources?  Effect on Americans Effect on Americans  Is it immoral? Is it immoral?

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4  Outsourcing: to obtain goods or services from an outside source: U.S. companies who outsource from China.  Outsource providers: companies that provide assistance and information for outsourcing o Some existing outsource providers: OffshoreXperts Global Help Desk Services Outsource Partners InternationalOutsource Partners Menu

5  Offshoring: the practice of moving business processes or services to another country, esp. overseas, to reduce costs A version of Outsourcing also the reason outsourcing is so heavily debated Menu

6  The biggest reason is to save money!!  Companies can improve their process efficienciesprocess efficiencies  Save through technology investment  Reduce labor cost In many cases this can lead to cost saving of 30% - 60% Menu

7  Obtain skills and abilities that are not within the company  Financing Flexibilty  Increase Instant Capacity  Improved Service  Reducing the amount of time for a product to reach market Menu

8  Makes Products that are labor intensive  The means through which the product is produced are repetitious  Are capable of remote execution Remote execution – task can be carried out in other locations. ( like a TV remote. You can control your TV from the comfort of your sofa) Menu

9  Possible demotion if the company is able to find alternate positions for employeesdemotion  Relocation and disruption of families  The burden of finding a new job if fortunate enough to do sonew job  Unemployment and other forms of government aid Unemployment Menu

10  In some cases companies who outsource are able to provide other positions for employees. o In most cases the positions involve lesser rank and/or pay. These positions may also force workers to relocate. This can be extremely stressful for children and spouses as well because they are forced to leave friends and other familiar aspects of life they may enjoy. The degree of detriment for kids is often determined by their age. Sudden moves are more difficult for older children because they have become accustomed to their lifestyle and friendships and are often reluctant to accept this change. This can result in feelings of animosity making them reluctant to adapt to a new situation. Menu

11  Some employees with skills that are in demand have the option of finding new positions.  Often times they are performing the same type of work as before but they are starting at the bottom of totem pole all over again Can lead to family disruption as well if the change results in relocation Menu

12  Can definitely sting and experienced workers pride as well as their families.  Causes a drop in standard of living  Unemployment is also an economical issue for all Americans Can cause depression that results in agitation of pre existing mental disorders. Many of these illnesses are treated through government aid. All employed Americans pay taxes to the government. Some of this money is used to fund the unemployment systems Menu

13  The only reason for outsourcing is financial Benefit for the company  In many cases these jobs are outsourced to third world countries Menu

14  Many factory jobs do not require schooling they are skills that are picked up through training on the job site and experience  Poor countries have lax labor laws and many have no laws to protect children Without labor laws it is easy for companies to abuse their employees and demand unfair amounts of work Employers can take advantage of child labor. This is very common in sweat shops MenuMenu

15  In some case yes, but there are some facotrs that need to be taken into account o The construction of these work places often destroy the land around these people. o It also may eliminate other opportunities that were there before. Leaves the factory as the only option and destroys they way of living these people have become accustomed to. People have a sense of ownership to the land around them and often grow to love it. Menu

16 Text  Goldsmith, N. M. Outsource Trends. New York : Conference Board, c2003  Lynch, Paul C. (2005, December 7). Outsourcing and Offshoring  Rivard, S. & Aubert, B. A. Information Technology Outsourcing. Armonk, N.Y. : M.E. Sharpe, c2008 Menu

17 Images  Retreived 4/28/2009 fromhttp://www.uml.edu/wuml/podcast/?cat=38 Retreived 4/28/2009 fromhttp://www.uml.edu/wuml/podcast/?cat=38  Cartoon Retrieved 4/28/2009 from http://www.offshoringmanagement.com/BlinderOffshoring.htm Cartoon Retrieved 4/28/2009 from http://www.offshoringmanagement.com/BlinderOffshoring.htm  Nike Whip retrieved 4/28/2009 from http://filipspagnoli.wordpress.com/2009/02/02/human-rights-cartoon- 119-sweatshops/ Nike Whip retrieved 4/28/2009 from http://filipspagnoli.wordpress.com/2009/02/02/human-rights-cartoon- 119-sweatshops/  Zhaotong-Sitemap-Cutline by Chris Pearson (2006-2007). Retrieved 4/28/2009 from http://www.zhaotongok.com/wp- content/uploads/2007/05/chinese-factory-worker.jpg Zhaotong-Sitemap-Cutline by Chris Pearson (2006-2007). Retrieved 4/28/2009 from http://www.zhaotongok.com/wp- content/uploads/2007/05/chinese-factory-worker.jpg  eMove Inc (2008). Retrieved 4/28/2009 from https://www.movinghelp.com/default.aspxeMove Inc (2008). Retrieved 4/28/2009 from https://www.movinghelp.com/default.aspx Menu


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