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Douglass Swhwimer: Outsourcing
 

Douglass Swhwimer: Outsourcing

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Douglass Swhwimer: Outsourcing Douglass Swhwimer: Outsourcing Presentation Transcript

  • GLOBAL OUTSOURCING Positives & Negatives of Outsourcing 正面 & 采 购 阴性
  • WHAT IS OUTSOURCING?
    • According to the dictionary, outsourcing involves the contracting out of jobs, services and other elements of business
    • However, outsourcing is not that simple
    • There are many complicated issues that arise from the thought of outsourcing
  • TYPES OF OUTSOURCING
    • Outsourcing has become popular amongst a myriad of different businesses
    • Current research shows that outsourcing has increased by nearly 15 percent each year
    • Outsourcing accounts for $5 trillion dollars
  • BUSINESSES THAT OUTSOURCE
    • IT & Telecommunications
    • Logistics & Supply Chain Mgmt
    • Business Processing
    • Finance & Accounting
    • Facilities Management
    • Call Centers
    • Fleet Management
    • Human Resources
  • TOP TEN COUNTRIES FOR OUTSOURCING
    • INDIA
    • MALAYSIA
    • CZECH REPUBLIC
    • POLAND
    • CHILE
    • BRAZIL
    • CANADA
    • PHILIPPINES
    • SINGAPORE
    • CHINA
  • STRENGHTS AND WEAKNESSES
    • There are two sides to the outsourcing debate
    • Some believe that outsourcing is a problem, while others believe that outsourcing is positive
    • Each country has it’s own pros and cons
  • POLAND
    • PROS
      • Good education system
      • Cheaper costs than other countries in the top ten
    • CONS
      • Infrastructure weaknesses
      • English language skills are poor
  • CHILE
    • PROS
      • Sophisticated infrastructure
      • Very good business environment
    • CONS
      • Lack of bilingual employees
      • Intellectual property protection laws are weak
  • CANADA
    • PROS
      • Language barrier is not an issue due to English being a fluent language
      • High quality workers
    • CONS
      • Due to labor laws, costs are higher for companies who use Canada as a base for outsourcing
  • CHINA
    • PROS
      • Low wages for employees
      • Although wages are low, workers are highly educated
    • CONS
      • Bureaucratic red tape
      • Language proficiency can be low
  • INDIA
    • PROS
      • Favorable tax rates
      • High quality IT training and very educated employees
    • CONS
      • Infrastructure is weak
      • Political and economic risks
  • IMPORTANCE
    • As you can see, each country has its own pros and cons to being the center of outsourcing for American corporations
    • In fact, many of the countries have similar pros and similar cons
    • There can be arguments made for each country
  • CONTINUED…
    • It is important to note that these are only pros and cons to basing outsourcing in certain locations
    • These are not the pros and cons of outsourcing in general
  • COMPANY BENEFITS
    • When companies outsource jobs, they are able to spend less on costs of labor
    • Although the cost of labor is less expensive abroad, the workers are still highly skilled
    • By lowering costs, companies are able to free up capital
    • Companies are helping the world labor market
    • Although wages seem slave-like to Americans, wages paid are relative to each country’s economy
  • CONSUMER BENEFITS
    • Companies are spending less on labor, so costs of products are significantly decreased
    • Consumers are able to get support 24 hours a day/7 days a week in a global market
    • Certain countries abroad can create superior products compared to American companies
      • Example of this is foreign-made automobiles
  • COUNTER TO OUTSOURCING MYTHS
    • MYTH
      • Outsourcing costs Americans jobs
      • Outsourcing only benefits the United States
      • Outsourcing is an ineffective idea
      • Outsourcing harms the US Economy
    • FACT
      • 1.9 million more jobs were created
      • Outsourced jobs help countries around the world as well
      • Not true! Outsourcing lowers prices for consumers
      • There is actually a positive relationship between economic freedom and per capita GDP
  • MY CONCLUSION
    • I think that outsourcing is very beneficial in a myriad of ways
    • Not only does outsourcing benefit the United States, it benefits countries worldwide
    • Outsourcing creates job for many of the unemployed around the world, as well as creating jobs for Americans who want the chance to work abroad
    • Each country has its own area of expertise which helps Americans obtain quality products and services