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Is Outsourcing a Wise Corporate Strategy?

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Presentation on theme: "Is Outsourcing a Wise Corporate Strategy?"— Presentation transcript:

1 Is Outsourcing a Wise Corporate Strategy?
Charles Angotto Jaslyn Moore David Comita

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3 Agenda 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

4 Types of Outsourcing Offshoring: Accomplishing work tasks in a different country. Outsourcing: Contracting work out to an external organization. 4 Main Types Services Professional Manufacturing Process-Specific Operational

5 Types of Outsourcing Jobs
Management of Services Human Resources Finance/Accounting Sales/Marketing Training Legal Processes Purchasing Logistics Information Technology Health Services Customer Service Operation of Facilities

6 The Outsourcing Company
Positives 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

7 The Outsourcing Company
Negatives 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

8 Reasons For Outsourcing

9 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

10 Where The Jobs Are Going

11 Top Countries Outsourcing to U.S.
1: United Kingdom 6: Sweden 2: Canada 7: United Arab Emirates 3: Australia 8: Saudi Arabia 4: Netherlands 9: Israel 5: Spain : Germany

12 Assignments Outsourced to U.S.

13 China’s Wage Increase

14 Work Cited http://www.diffen.com/difference/Offshoring_vs_Outsourcing
Heizer, Jay and Barry Render. Operations Management. Upper Saddle River, NJ: Pearson, Textbook. Jilani, Zaid. Chart: Top 'U.S.' Corporations Outsourced More than 2.4 Million American Jobs Over the Last Decade. 19 April Article. 30 July 2012. K, Scholasticus. Outsourcing Statistics. 26 April Article. 29 July 2012. Labor, United States Department of. Databases, Tables, &l Calculators by Subject. n.d. Website. 29 July 2012.

15 Questions?


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