Is Outsourcing a Wise Corporate Strategy?
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Outsourcing a Wise Corporate Strategy? Charles Angotto Jaslyn Moore David Comita
description
Is Outsourcing a Wise Corporate Strategy?. Charles Angotto Jaslyn Moore David Comita. Agenda. Types of Outsourcing Types of Jobs Being Outsourced The Outsourcing Company (Positives) The Outsourcing Company (Negatives) Reasons For Outsourcing (Graph) Impact on U.S. Economy - PowerPoint PPT Presentation
Transcript of Is Outsourcing a Wise Corporate Strategy?
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?
