Discuss the impact of overseas outsourcing essay

Cultural Imperialism Cultural Imperialism the promotion of a countries culture onto another country. Cultural imperialism has occured throughout history. Early civilisations as the expanded actively imposed their cultures on the the new regions that they controlled. The Roman empire imposed language, cuisine, and architecture as it expanded throughout Europe.

Discuss the impact of overseas outsourcing essay

Management processes[ edit ] Globalization and complex supply chainsalong with greater physical distance between higher management and the production-floor employees often requires a change in management methodologies, as inspection and feedback may not be as direct and frequent as in internal processes.

This often requires the assimilation of new communication methods such as voice over IPinstant messagingand Issue tracking systems, new time management methods such as time tracking softwareand new cost- and schedule-assessment tools such as cost estimation software.

This is exacerbated when outsourcing is combined with offshoring in regions where the first language and culture are different. The visual cues that are missing in a telephone call may lead to misunderstandings and difficulties. Williamson wrote that the governance structure is the "framework within which the integrity of a transaction is decided.

Security[ edit ] Before outsourcing, an organization is responsible for the actions of their entire staff, sometimes a substantial liability. When these same people are transferred to an outsource service provider, they may not even change desks.

But their legal status changes. They are no longer directly employed by and responsible to the organization. This creates legal, security and compliance issues that are often addressed through the contract between the client and the suppliers.

This is one of the most complex areas of outsourcing and sometimes involves a specialist third-party adviser. Fraud is a specific security issue as well as criminal activity, whether it is by employees or the supplier staff.

However, it can be disputed that fraud is more likely when outsourcing is involved. Citibank did not find out about the problem until the American customers noticed discrepancies with their accounts and notified the bank. Companies shifting to insourcing often cite the desire to increase control, compliance and to gain competitive differentiation through vertical integration or the development of shared services, commonly called a center of excellence.

For example, global software development, which often involves people working in different countries, cannot simply be called outsourcing. The outsourcing-based market model fails to explain why these development projects are jointly developed, and not simply bought and sold in the marketplace.

Recently, a study has identified an additional system of governance, termed algocracy, which appears to govern global software projects alongside bureaucratic and market-based mechanisms. The study [31] distinguishes code-based governance system from bureaucracy and the market, and underscores the prominent features of each organizational form in terms of its ruling mechanism: So, global software development projects, though not insourced, are not outsourced either.

They are in-between, in a process that is sometimes termed "remote in-sourcing. Standpoint of labor[ edit ] From the standpoint of labor, outsourcing may represent a new threat, contributing to worker insecurity, and is reflective of the general process of globalization and economic polarization.

In Europe, the Acquired Rights Directive attempts to address the issue. The Directive is implemented differently in different nations. In the United States, the Trade Adjustment Assistance Act is meant to provide compensation for workers directly affected by international trade agreements.

Whether or not these policies provide the security and fair compensation they promise is debatable. Policy-making strategy[ edit ] A main feature of outsourcing influencing policy-making is the unpredictability it generates regarding the future of any particular sector or skill-group.

The uncertainty of future conditions influences governance approaches to different aspects of long-term policies. Competitiveness strategy[ edit ] Economic growth requires change, therefore a governance disposed to helping social and economic structures adapt to the changing environment will facilitate growth and a stable transition to new economic structures [35] until the economic structures become detrimental to the social, political and cultural structures.

In developing countriespolicies that embrace the global phenomenon of outsourcing are a logical response to the ongoing movement towards "open markets" and "trade liberalization. As prices adjust to those in the global market they no longer reflect domestic productivity, driving lower-productivity firms in the previously protected sectors out of business.

Economic theorists argue that the resulting unemployment is only temporary as workers readjust and are eventually incorporated into the country's most productive sectors, namely those which enjoy a competitive edge over other players in the international market. Nonetheless, rapid liberalization of markets in developing countries has not maximized the productivity potential of the region.

In the Global South, where technological development is drastically lower than in the North, the redeployment of human and capital resources into new export markets has not come at the cost of necessarily low-productivity sectors but rather underdeveloped ones.

In other words, many of the previously protected sectors were not competitive yet on a global scale, not because they naturally lacked the comparative advantage, but because industry efficiency had not yet been reached. Outsourcing fills in the gap of receding protected national industries, improving employment and living standards.

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Among other economic externalities, outsourcing promotes capital inflows and infrastructure.Globalization's impact on operations and supply chain management is multifaceted. In this lesson, we will discuss four impacted areas: procurement and sourcing methods, inventory management.

Outsourcing refers to an organization contracting work out to a 3rd party, while offshoring refers to getting work done in a different country, usually to leverage cost advantages. It's possible to outsource work but not offshore it; for example, hiring an outside law firm to review contracts instead of maintaining an in-house staff of lawyers.

- Outsourcing and the Global Environment Abstract The following paper will detail the impact on businesses concerning outsourcing and the global environment. This paper will outline the needs of the modern business to embrace the concept of outsourcing and the need to educate employees on the diversity of global business practices.

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The drawback to outsourcing that gets the most press is the loss of jobs in the U.S. (or whichever country is doing the outsourcing). The fact that workers in other countries may be getting job opportunities they hadn’t had before is little comfort to members of, say, U.S. manufacturing communities hit hard by factory closures.

Granted, outsourcing is not good for American jobs. This is obvious.

Discuss the impact of overseas outsourcing essay

Outsourcing is a byproduct of globalization. Globalization is process where societies and cultures have become integrated through a globe-spanning network of communication and execution.

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