Is Outsourcing a

Wise Corporate Strategy?

Charles AngottoJaslyn MooreDavid Comita

Agendao Types of Outsourcingo Types of Jobs Being Outsourcedo The Outsourcing Company (Positives)o The Outsourcing Company (Negatives)o Reasons For Outsourcing (Graph)o Impact on U.S. Economyo Where The Jobs Are Going (Graph)o Top Countries Outsourcing to The U.So Number of Assignments Being Outsourced to The U.S.o China’s Wages

Types of Outsourcing• Offshoring: Accomplishing work tasks in a

different country.• Outsourcing: Contracting work out to an

external organization.• 4 Main Typeso Serviceso Professional Manufacturingo Process-Specifico Operational

Types of Outsourcing Jobs

• Purchasing• Logistics• Information

Technology• Health Services• Customer Service• Operation of Facilities

• Management of Services

• Human Resources• Finance/Accounting• Sales/Marketing• Training• Legal Processes

The Outsourcing Company

Positives• Greater Profits• Focus on core goals• Money saved in wages/salaries (Offshoring)• Less Inventory & WIP (Work in Process)• Less money tied up in Plant & Equipment • Gaining knowledge on global supply chain• More efficient• Gaining outside technology

The Outsourcing Company

Negatives• Risk of imitators• Poor Customer Service interaction• Taking away jobs from American citizens• Increased transportation cost/Greater risk• Losing control of management• Negative impact on current employees moral

Reasons For Outsourcing

Economic Impact on the U.S.

• According to thinkprogress.org, The Wall Street Journal reports that some of the nation’s Largest corporations– General Electric, Caterpillar, Microsoft, Wal-Mart, Chevron, Cisco, Intel, and Oracle cut their workforces by 2.9 million people of the last decade while hiring 2.4 million people overseas

Where The Jobs Are Going

Top Countries Outsourcing to U.S.

• 1: United Kingdom 6: Sweden• 2: Canada 7: United Arab Emirates• 3: Australia 8: Saudi Arabia• 4: Netherlands 9: Israel• 5: Spain 10: Germany

Assignments Outsourced to U.S.

China’s Wage Increase

Work Cited• http://www.diffen.com/difference/Offshoring_vs_Outsourcing

• https://www.odesk.com/blog/2009/04/outsourcing-to-the-united-states-on-the-rise/

• Heizer, Jay and Barry Render. Operations Management. Upper Saddle River, NJ: Pearson, 2001. Textbook.

• Jilani, Zaid. Chart: Top 'U.S.' Corporations Outsourced More than 2.4 Million American Jobs Over the Last Decade. 19 April 2011. Article. 30 July 2012.

• K, Scholasticus. Outsourcing Statistics. 26 April 2010. Article. 29 July 2012.

• Labor, United States Department of. Databases, Tables, &l Calculators by Subject. n.d. Website. 29 July 2012.

Questions?