Is Outsourcing a
Wise Corporate
Strategy?
Charles Angotto
Jaslyn Moore
David Comita
Agenda
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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
Types of Outsourcing
• Offshoring: Accomplishing work tasks in a
different country.
• Outsourcing: Contracting work out to an
external organization.
• 4 Main Types
o Services
o Professional Manufacturing
o Process-Specific
o Operational
Types of Outsourcing Jobs
• Management of
Services
• Human Resources
• Finance/Accounting
• Sales/Marketing
• Training
• Legal Processes
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Purchasing
Logistics
Information Technology
Health Services
Customer Service
Operation of Facilities
The Outsourcing
Company
Positives
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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
The Outsourcing
Company
Negatives
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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
Reasons For Outsourcing
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
Where The Jobs Are
Going
Top Countries
Outsourcing to U.S.
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1: United Kingdom
2: Canada
3: Australia
4: Netherlands
5: Spain
6: Sweden
7: United Arab Emirates
8: Saudi Arabia
9: Israel
10: Germany
Assignments Outsourced
to U.S.
China’s Wage Increase
Work Cited
• http://www.diffen.com/difference/Offshoring_vs_Outsourcing
• https://www.odesk.com/blog/2009/04/outsourcing-to-theunited-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.
Questions?