Outsourcing Project

danielnguyen

a little history.

> �������������#����� ��� �����?�3&��%2(*-)0(�<�%;��������=�

“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

INDUSTRIAL REVOLUTION

{~18th to 19th century}

INSHOREOUTSOURCING

OFFSHOREOUTSOURCING

INSHOREOUTSOURCING

EXAMPLE

NY

EXAMPLE

INSHOREOUTSOURCING

NY KC

EXAMPLE

INSHOREOUTSOURCING

NY KC

EXAMPLE

INSHOREOUTSOURCING

A B

INSHOREOUTSOURCING

PLAYBOY AMERICAN MEDIA

EXAMPLE

Everything but editorials will be outsourced.

INSHOREOUTSOURCING

OFFSHOREOUTSOURCING

OFFSHOREOUTSOURCING

UNITED STATES

UNITED STATES

manufacturing - China

OFFSHOREOUTSOURCING

UNITED STATES

customer service - India

manufacturing - China

OFFSHOREOUTSOURCING

customer service - India

UNITED STATES

manufacturing - China

other jobs - Other CountriesOFFSHOREOUTSOURCING

INSERTJOB

TITLE HERE.

OFFSHOREOUTSOURCING

EXAMPLE

INDIA

what countries are good at... [2009]

source: http://bit.ly/4R73hr

what countries are good at... [2009]

RUSSIASOFTWARE.

source: http://bit.ly/4R73hr

I NDIADESIGN.TRAFFIC.

what countries are good at... [2009]

source: http://bit.ly/4R73hr

PHILIPPINESCONTENT.DESIGN.SOFTWARE.

what countries are good at... [2009]

source: http://bit.ly/4R73hr

ROMANIACONTENT.SOFTWARE.TRAFFIC.

what countries are good at... [2009]

source: http://bit.ly/4R73hr

UKCONTENT.DESIGN.SOFTWARE.TRAFFIC.

what countries are good at... [2009]

source: http://bit.ly/4R73hr

AUSTRALIACONTENT.DESIGN.SOFTWARE.TRAFFIC.

what countries are good at... [2009]

source: http://bit.ly/4R73hr

US | CANADACONTENT.DESIGN.SOFTWARE.TRAFFIC.

what countries are good at... [2009]

source: http://bit.ly/4R73hr

the point?

source: http://bit.ly/4R73hr

the point?

source: http://bit.ly/4R73hr

EVERYONE OUTSOURCES.

positives

+ cut costs

positives

+

+

cut costs

performance & productivity

positives

+

+

+

cut costs

eliminate inefficiencies

performance & productivity

positives

+

+

+

+

cut costs

performance & productivity

provides jobs overseas & new possibilities

eliminate inefficiencies

positives

negatives

loss of American jobs

negatives

loss of American jobs

same labor laws don’t apply

negatives

B

C

loss of American jobs

negatives

same labor laws don’t apply

quality of service isn’t always that great

TODAY

OFFSHORE OUTSOURCING

IS THE FUTURE.

OFFSHORE OUTSOURCING

DOESN’T APPLY TO EVERYTHING

OFFSHORE OUTSOURCINGIS THE FUTURE.

> ���� ��� ������������������ ���?������������������������������������ ���� ������!������ ��������"

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

>����� � ������� ��� �����?�)7)��2+%5(-3����86-2)66:))/�<�%28%5;��������=�

“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

>� ��� ��� ������� !�����#�?�)2.-��%00����86-2)66:))/�<�%28%5;���������=�

“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

OFFSHORE OUTSOURCINGDOESN’T ALWAYSWORK.

>"� ��#� ������������"� �� ��� ��� �����? 1;��%55)77����86-2)66:))/�<�)&58%5;��������=�

“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

>������������������� ��� �����?�(��4)50-2+����35&)6�<�39)1&)5��������=�

“...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

>���� ��$ ����� ��������������������������� ���?�5-'�!���(132(6����%571387,��300)+)�<�)&58%5;��������=�

“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

CONCLUSION

danielnguyen

sources"Outsourcing of Wholesale Lockbox Processing One Key to Banks' Profitability." Investment Weekly News 21 Nov. 2009:

283. Business and Company ASAP. Web. 29 Nov. 2009.

<http://find.galegroup.com/gps/start.do?prodId=IPS&userGroupName=occc_main>.

A

B"Mercer Sees New Client Momentum Building for Its U.S. Outsourcing Business." Investment Weekly News 28 Nov. 2009:

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.

DSAMPLE - "Talent For Rent." Technology. Forbes LLC, 2009. General Reference Center Gold. Web. 29 Nov. 2009.

<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).