Essays on Advantages and Disadvantages of Offshoring Report

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  The paper "Advantages and Disadvantages of Offshoring" is a great example of a report on business. Offshoring is a form of outsourcing where a company moves its business services to another country other than the home country with an aim to cut costs, enter new markets, tap talent that is domestically unavailable or to overcome domestic regulations that prevent specific business activities domestically. History of offshoringMoving jobs to another country from the domestic country started in the 1960s in the developed countries. Factories were transferred from developed countries to developing countries. Offshoring has since created a structural change in the developed countries to post-industrial from industrial service society.

There was a decrease in transportation and communication costs in the 20th century which brought a big difference in paying rates, thus increasing offshoring from countries that are wealthier to less wealthy countries. Internet growth, fiber-optic, and World Wide Web reduced costs of transportation for information work, and at some point, there were no costs incurred at all. Reading medical data like magnetic resonance imaging and X-rays, call centers, title searching, computer programming, and preparation of income tax are being offshored by the development of the internet.

One of the poorest countries in the EU in the 1990s was Ireland. US companies started offshoring electronic, software, and intellectual property to Ireland because its corporate tax rates were low. Ireland then became one of the richest EU countries because offshoring helped it create a high tech boom. Production offshoring involves physical manufacturing processes being relocated to a country that has low costs. However, it is difficult to offshore product design, research, and development process which leads to new products because these activities require a skill that is very hard to obtain in cheaper labor regions.

India was the first to benefit from offshoring trends because it has many people speaking English and manpower which is technically proficient. India’ s offshoring industry started in the early 1990s. Currently, the engineering talent of India has made it an offshoring destination of America high tech firms.

References

Federal Deposit Insurance Corporation. 2004. Offshore Outsourcing of Data Services by

Insured Institutions and Associated Consumer Privacy Risks

GAO. 2005. Offshoring of Services: An Overview of the Issues. Report to Congressional Committees.

Milutis, M. 2004. Challenges of Offshore Outsourcing: Understanding the Risks and the Hidden Costs. Computer Aid Inc.

Waddell, D, Devine, J, Jones, G & George, J. 2006. Contemporary Management. McGraw-Hill

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