Corrections

An essay about outsourcing

• What considerations might move companies to outsource or offshore parts of their business and what might make them refrain from doing so?

• A company that wants to outsource or offshore parts of their business, has to make aware of the consequences.

• There are some advantages and disadvantage to look at by outsourcing to India for instance.

• First advantage, are the lower labor costs in overseas.

• The economist showed in an article about outsourcing, that the overheads in India are only one third in comparison to the US overheads.

• Second advantage, are the conditions concerning education and schooling.

• That article showed also, that college graduates checking credit card bills or reports for insurance companies rather than uneducated people.

• Third advantage is the technical infrastructure.

• More and more lager cities like Bangalore are linked to the internet.

• This fact makes communication between continents easy.

• On the other side of job migration are the following disadvantages we also need to consider.

• First, companies hire good educated employees in overseas and in the consequence jobs back home get vacant.

• Secondly, mass layoffs can harm a company’s image in public and for what a company stands for.

• Thirdly, for outsourcing or off-shoring a company needs to provide know-how, so that service provider can accomplish tasks for them.

• By doing so, more and more knowledge moves abroad and in the same time due to dismissals knowledge and practical approaches getting lost.

• If I were an executive of a company that has the possibility to transfer business parts abroad, I would have my focus on avoiding the loss of know-how to foreigners.

• Knowledge brings you the money whereas the saving from migration jobs does not.