Since the Industrial Revolution, companies have sought ways to increase profits through exploiting their competitive advantages, traditionally by owning and directly controlling assets themselves. However, the model of outsourcing functions to other companies has grown since the late 20th century in order to cut costs and improve productivity, though it also brings risks of lost domestic jobs and reduced quality control. While outsourcing offers economic benefits, over-reliance on it can also weaken company culture and innovation over the long-term.

2. danielnguyen

4. a little history.

5. “Since the Industrial Revolution, companies have
grappled with how they can exploit their competitive
advantage to increase their markets and their profits.
The model for most of the 20th century was a large
integrated company that can “own, manage, and
directly control” its assets.”
source: http://bit.ly/4R73hr

6. INDUSTRIAL
REVOLUTION
{~18th to 19th century}

7. INSHORE
OUTSOURCING
OFFSHORE
OUTSOURCING

8. EXAMPLE
INSHORE
OUTSOURCING

9. EXAMPLE
NY
INSHORE
OUTSOURCING

10. EXAMPLE
NY KC
INSHORE
OUTSOURCING

11. EXAMPLE
NY KC
INSHORE
OUTSOURCING

12. A B
INSHORE
OUTSOURCING

13. EXAMPLE
AMERICAN
PLAYBOY MEDIA
Everything but editorials will be outsourced.
INSHORE
OUTSOURCING

14. OFFSHORE
OUTSOURCING

15. UNITED STATES
OFFSHORE
OUTSOURCING

16. UNITED STATES
manufacturing - China
OFFSHORE
OUTSOURCING

17. UNITED STATES
manufacturing - China
customer service - India
OFFSHORE
OUTSOURCING

18. UNITED STATES
INSERT
JOB
TITLE
HERE.
manufacturing - China
customer service - India
OFFSHORE other jobs - Other Countries
OUTSOURCING

19. EXAMPLE
INDIA
OFFSHORE
OUTSOURCING

20. what countries are good at... [2009]
source: http://bit.ly/4R73hr

21. what countries are good at... [2009]
RUSSIA
SOFTWARE.
source: http://bit.ly/4R73hr

22. what countries are good at... [2009]
I NDIA
DESIGN.
TRAFFIC.
source: http://bit.ly/4R73hr

23. what countries are good at... [2009]
PHILIPPINES
CONTENT.
DESIGN.
SOFTWARE.
source: http://bit.ly/4R73hr

24. what countries are good at... [2009]
ROMANIA
CONTENT.
SOFTWARE.
TRAFFIC.
source: http://bit.ly/4R73hr

25. what countries are good at... [2009]
UK
CONTENT.
DESIGN.
SOFTWARE.
TRAFFIC.
source: http://bit.ly/4R73hr

26. what countries are good at... [2009]
AUSTRALIA
CONTENT.
DESIGN.
SOFTWARE.
TRAFFIC. source: http://bit.ly/4R73hr

27. what countries are good at... [2009]
US | CANADA
CONTENT.
DESIGN.
SOFTWARE.
TRAFFIC.
source: http://bit.ly/4R73hr

28. the point?
source: http://bit.ly/4R73hr

29. the point?
EVERYONE
OUTSOURCES.
source: http://bit.ly/4R73hr

30. positives

31. positives
+ cut costs

32. positives
+ cut costs
+ performance & productivity

33. positives
+ cut costs
+ performance & productivity
+ eliminate inefficiencies

34. positives
+ cut costs
+ performance & productivity
+ eliminate inefficiencies
+ provides jobs overseas & new possibilities

35. negatives

36. negatives
loss of American jobs

37. negatives
loss of American jobs
same labor laws don’t apply

38. negatives
loss of American jobs
B same labor laws don’t apply
C quality of service isn’t always that great

39. TODAY

40. OFFSHORE
OUTSOURCING
DOESN’T APPLY TO
EVERYTHING
OFFSHORE
OUTSOURCING
IS THE
FUTURE.

41. OFFSHORE
OUTSOURCING
IS THE
FUTURE.

42. Linda Wertheimer “Well, what do you think? Is inshoring likely to catch on or do
you think bottom line realities continue to point offshore?"
Christine Ferrusi Ross "I think the reality is actually both. I think in the short term,
economic realities make it as cost effective in certain situations to have your call
centers or other kind of work done in the United States. Long term, you also have to
think, though, about population trends. We might not have the taleI think in the short
term, economic realities make it as cost effective in certain situations to have your call
centers or other kind of work done in the United States. Long term, you also have to
think, though, about population trends. We might not have the talent for I.T. to ever
really come back onshore fully, if you think about, as the United States, we're an older
population. Whereas, if you looked at India, their median age of the population is
much younger.”
source: http://j.mp/8pKl7M

43. “More aggressive outsourcers are aiming to create radical
business models that can give them an edge and change the
game in their industries. Old-line multinationals see
offshoring as a catalyst for a broader plan to overhaul
outdated office operations and prepare for new competitive
battles..."This isn't about labor cost," says Daniel Marovitz,
technology managing director for Deutsche Bank's global
businesses (DB ). "The issue is that if you don't do it, you
won't survive."
source: http://j.mp/lfVL2

44. “The shift toward outsourcing is the clearest sign yet
that Stringer wants Sony to act more like Apple
(AAPL) or Cisco (CSCO). They consistently earn fatter
profit margins by designing their own products and
leaving manufacturing to others, and have made
serious inroads into portable music players and home
entertainment systems, where Sony was once king.
source: http://j.mp/8vJibN

45. OFFSHORE
OUTSOURCING
DOESN’T
ALWAYS
WORK.

46. “Shifts in exchange rates, plus the strain on resources
needed to manage a relationship with an overseas
plant, make manufacturing in the U.S. newly viable
for some. Nearby production facilities are particularly
important for companies whose products have a short
life span and can't sit in transit for weeks, or for whom
custom orders and quick turnaround are the norm.”
source: http://j.mp/6gIjO8

47. “...there's the unmeasurable aspect of what happens when a
company is no longer a culture but an amalgamation of
outsourcing partners. They may add great efficiency into the
business, but they generally add nothing to the long-term
vision. As most companies that have been around awhile are
aware, great ideas don't always come from the people at the
top. Outsourcing can eliminate an entire interaction layer that
is impossible to measure with objective tools. Cultures are
inextricably linked to innovation and quality, and the less
there is of the former the more the latter two will suffer in the
long term.”
source: http://j.mp/2jLUzL

48. “Child labor pervades the developing world. The
International Labour Office estimates that at least 250
million children between the ages of 5 and 15 are
working...”
source: http://j.mp/5vGq8H

49. CONCLUSION

50. danielnguyen

51. sources
"Outsourcing of Wholesale Lockbox Processing One Key to Banks' Profitability." Investment Weekly News 21 Nov. 2009:
A 283. Business and Company ASAP. Web. 29 Nov. 2009.
<http://find.galegroup.com/gps/start.do?prodId=IPS&userGroupName=occc_main>.
"Mercer Sees New Client Momentum Building for Its U.S. Outsourcing Business." Investment Weekly News 28 Nov. 2009:
B 177. Business and Company ASAP. Web. 29 Nov. 2009.
<http://find.galegroup.com/gps/start.do?prodId=IPS&userGroupName=occc_main>.
C “Outsource” New Oxford American Dictionary. 2nd Edition. 2005.
SAMPLE - "Talent For Rent." Technology. Forbes LLC, 2009. General Reference Center Gold. Web. 29 Nov. 2009.
D <http://find.galegroup.com/gps/start.do?prodId=IPS&userGroupName=occc_main>
E Are Outsourced Jobs Coming Back?(11:00-12:00 PM)(Broadcast transcript)(Audio file).