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Douglass Swhwimer: Outsourcing

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Douglass Swhwimer: Outsourcing

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

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