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Published byAsher Fields Modified over 9 years ago
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Presented By: Ben Barnes Sidney Ellis
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Subcontracting a process such as product design or manufacturing to a third-party company
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Redirecting time and energy to core competencies More efficient use of land, labor, and capital Takes advantage of information technologies and other resources Risk Management Staffing issues/ Larger talent pool Operational Expertise Capacity Management
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Globalization Increased Suppliers India vs. China BRICM increasing capabilities Person-to-person Offshoring Smaller scales Online tutoring, web and software development, writing and translation services
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Value of a Dollar Rupee up 11% vs. U.S. Dollar in 2007 Indexing prices Currency Hedges Moving from Big Cities Oversaturation Shortage of Talent Second-tier cities
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RIM Offsite management of servers, databases, networks and security Growing about 20% per year Smaller Contracts Call Centers Most mature segment Huge turnover “client-centric” solutions
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E-Commerce ◦ electronic funds transfer ◦ supply chain management, orders and shipment information ◦ inventory management ◦ E-mail and messaging ◦ Accounting and finance systems
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150 senior executives that were interviewed at Fortune 1000 companies, 19% stated that breaking cultural barriers was their second largest concern after loss of operational control. The Problem: Language – 1.2 billion people speak English, but 380 million are native speakers. – Proficiency- written test given vary from actual oral test. Cultural barriers are often silent unlike language. – Norms – Misinterpretations
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Negotiation Styles “High Context Cultures” (Highly Interdependent, relational) ◦ Maintaining reputation or honor considered vital ◦ Minimizing confrontation or surprises during relationship “Low Context Cultures” (Factual Oriented) ◦ More open to change ◦ Competition and confrontation Cause a clash ◦ American considered low context- focus on figures and desire quick conclusions, which may be considered aggressive to someone from high context, which is used to taking time to develop a relationship
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Access, storage and transfer of data Compliance issues with regulations and U.S. Privacy laws Most worried problem is: A lot of firms deal with the same companies overseas. ◦ An employee that is located overseas sells secrets to competitor U.S. has headed most of this off by signing contracts that are under U.S. Law During training phases of applications, fake data is used Due Diligence for customers
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YouTube - ABC News : 20/20 : Myth : Outsourcing Bad for America YouTube - ABC News : 20/20 : Myth : Outsourcing Bad for America
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