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Is Outsourcing a Wise Corporate Strategy?

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

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Is Outsourcing a Wise Corporate Strategy?

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  1. Is Outsourcing a Wise Corporate Strategy? Charles Angotto Jaslyn Moore David Comita

  2. 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 • Where The Jobs Are Going (Graph) • Top Countries Outsourcing to The U.S • Number of Assignments Being Outsourced to The U.S. • China’s Wages

  3. Types of Outsourcing • Offshoring: Accomplishing work tasks in a different country. • Outsourcing: Contracting work out to an external organization. • 4 Main Types • Services • Professional Manufacturing • Process-Specific • Operational

  4. Types of Outsourcing Jobs • Management of Services • Human Resources • Finance/Accounting • Sales/Marketing • Training • Legal Processes • Purchasing • Logistics • Information Technology • Health Services • Customer Service • Operation of Facilities

  5. 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

  6. 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

  7. Reasons For Outsourcing

  8. 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

  9. Where The Jobs Are Going

  10. 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

  11. Assignments Outsourced to U.S.

  12. China’s Wage Increase

  13. 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.

  14. Questions?

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