The paper "The Offshoring of the American Government" Is a perfect example of a Management Case Study. Offshoring may be described as the relocation of an organization's business process from a certain country to another and these processes may entail operational processes such as manufacturing, accounting, I.T services, marketing, and customer services among others (Michael Zuckerman, 2008). This particular scenario has prompted Australian organizations to evolve models for operating amid expanding geographies. Over the past two decades, a new approach coupled with advances in Information Technology has taken hold, this approach has managed to centralize data and at the same time decentralize functions. For instance, Australian companies have the capabilities of engineering car models in China; they can perform database research in India and underwrite US land titles in the Philippines (Rutherford & Mobley, 2005). Organizations across the globe are capitalizing on the Offshoring concept in order to achieve and increase their competitiveness.
Over the last few years probably five years, Offshoring has managed to evolve and this evolution has made it assume new forms such as outsourcing business process and even Research and development (Erran & Paul, P.14, 2005) Some of Australia’ s major companies have already outsourced some of their services to key destinations, for instance, Telstra one of the iconic companies in Australia has already pledged to reduce its $ 1.5 billion I. T operations bill to $ 750 million and reliable sources are estimating as much as 1500 Australian jobs are likely to be offshored with telecommunication companies estimating a saving of USD $ 20 billion per year by Offshoring its services to developing countries(Richard Grant, 2005). According to Sri Annaswamy who is the founding director of Swammy & associate an Australian based consultancy organization, he is arguing that the move to offshore processes in particular low-end destinations is inevitable and business process outsourcing are now going out of Australia to countries such as India and China (Zdnet, 2006) According to GAO (p. 9, 2005), Offshoring has rapidly expanded due to: Technological advances such as telecommunications and advent of the internet which has enabled workers from different locations to communicate and connect electronically and this have also facilitated the digitization and standardization of activities which are necessary for completing the business process in which these changes have enabled the different business processes to be divided into smaller components which could be performed in satellite locations.
For instance, software technology has made it possible for different organizations to outsource their financial or human resource activities to a different overseas organization that performs these activities to many clients rather than handling the specific functions internally. Different countries have also increasingly opened up their national borders to the global economy. Other countries have managed to develop very highly skilled who possess the required technical skills to perform the technological and services related works. Other factors that may be taken into account include the widespread use of the English language, world-class academic institutions with strong educational systems, and an increasingly open and properly regulated & managed business environment (A. T-Kearney, 2007). Offshoring History Way back in the early 20th century, two economists John Keynes and Friedrich Hayek managed to come up with macroeconomic theories.
Keynes who was quite popular during the period of great depression believed in economic trends that could overwhelm the specific behavior of individuals and he believed that in order for a government to have a working and efficient economy, they needed to expediently assert control over certain aspects of the government.
This led to the establishment of trade barriers which were made possible by tariffs which ensured protection for industries and their workers (Stanford University).
Rutherford, B., and Mobley, S. 2005. ‘The Next Wave: refining the future of Offshoring’
Journal of Corporate Real Estate, Vol. 1, No. 1, pp. 87-95
Michael A. Zuckerman. 2008, The Offshoring of the American Government, http://www.lawschool.cornell.edu/research/cornell-law-review/upload/Zuckerman.pdf 3rd April 2010
Erran Carmel, Paul Tjia, 2005. Offshoring Information Technology: Sourcing and Outsourcing to a global workforce, 1st edition, Cambridge university press, Cambridge.
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Zdnet, 2006. Australian forms still nervous of Offshoring. http://www.zdnet.com.au/australian-firms-still-nervous-of-offshoring-139268247.htm May 6, 2010.
Dr. Richard Grant, 2006. Offshoring Jobs: US and Australian perspectives. Parliament of Australia. http://www.aph.gov.au/library/pubs/RB/2004-05/05rb12.htm May 6, 2010.
Australian IT, 2009. Westpac takes advice on Offshoring. http://www.theaustralian.com.au/australian-it/westpac-chief-gail-kelly-believes-in-offshoring-placing-jobs-in-low-cost-countries-like-india/story-e6frgakx-1225810375049 Accessed May 6, 2010.
Kate Lundy, 2003. Australia VS Offshore: How can Australia win? http://www.katelundy.com.au/2003/10/10/ict-offshoring/ Accessed May 6, 2010.
Munir Kotadia, 2004. AIIA: Indian outsourcing threat can help Australia. http://www.builderau.com.au/news/soa/AIIA-Indian-outsourcing-threat-can-help-Australia/0,339028227,339169701,00.htm Accessed May 6th 2010