However, what is often not mentioned is that China has three to four times as many people as the United States and there are little to no wage, benefit or safety protections in that country. Even American juggernauts like Apples and others have been ensnared by this being revealed and discussed (Frost & Burnett, 2007)
American slang and expressions are very different just like if they are in all countries around the world. (Jayaraman et al
To be honest, those factories probably know well in advance when they will be visited and this can lead to a fake face being shown when "inspections" are made. It could also be true that some firms know this in advance and they use that as a wedge to feign ignorance when something terrible happens like a building collapse or an industrial accident that hurts or maims more than one person (Jones & Felps, 2013)
Indeed, China is in the East and the United States is in the West. The East and West are entirely different in more than one way (Wettstein, 2012)
They all have their own problems or concerns, even if they solve the problem they are designed to correct. Because there are no perfect solutions, the only way to solve the issue of outsourcing is to find a solution that is the most logical based on the choices presented, and work to implement it while mitigating some of the more negative consequences it will cause (Aneesh, 2009)
The mistreatment of people who live and work in many other countries is deplorable (Aneesh, 2009). Even companies that are based in the United States and that do not intend to harm or exploit employees can contribute to the problem, because they send their work to countries where these types of injustices take place (Buchholz, 2004)
Because there are no perfect solutions, the only way to solve the issue of outsourcing is to find a solution that is the most logical based on the choices presented, and work to implement it while mitigating some of the more negative consequences it will cause (Aneesh, 2009). By doing that, companies that outsource to other countries will still be able to do so, but the labor practices and union involvement in those countries will have to be at an acceptable level that stops mistreatment of those employees (Krugman, Obtsfeld, & Melitz, 2012)
Based on the thorough literature review completed for this paper, it is apparent that there is a definite maturity curve occurring in the outsourcing industry. Figure 1, Hype Cycle for Outsourcing, 2011 (Cardella, 2011)
This offloading of the more mundane and easily-taught tasks can free up both dollars and time to pursue the next major distribution for any company. Of all nations participating in outsourcing today, Indian outsourcers have a commanding lead in this area (Hansen, pp
). As the outsourcing companies are increasingly relying on development teams across a very broad geographic region, the ability to track project performance to a very granular level with analytics and BI tools is now a skill set in high demand (Harland, pgs
). Outsourcing the most mundane, easily transferred activities including record keeping, accounting and payroll can lead to higher levels of profitability and long-term performance as products are developed more efficiently and completely (Jiang, Frazier, Prater, pp
Gartner Hype Cycle for Outsourcing, 2011 The pace and depth of innovation is quickening, and for many organizations their ability to sustain this level of activity and development is being challenged by the many distractions of running their less profitable operations. At the center of this challenge is the need to offload the least-valuable administrative work and activity so the most valuable strategies and tactics contributing to innovation and new product development can be undertaken (McIvor, et
This could materialize in customer dissatisfaction and the loss of the competitive position. Finally, the last company disadvantage is that of increased dependency on the foreign plant and the loss of centralized control at the level of the headquarters in the domestic county (Bucki, 2010)
The providers will have large, sophisticated operations providing value-added services at a level incomprehensible even fifteen years ago. […] the outsourcing begins with processes furthest from the core and then moves toward it" (Greaver, 1999)
They would be required to possess low skills and they would easily be replaceable. Henry Ford was often wondering why employees brought their heads to work, when the company only needed their hands and feet (Losey, 1998)
If a manufacturing company encounters such a situation, then its totality of operations within the country is compromised. While if the strike or other union problem emerges within the foreign plant, the domestic company would not be negatively impacted to such an intense degree (Meyer, 2010)
The most common dissatisfaction was linked to the fact that outsourcing took jobs away from national workers and gave them to foreigners. In 2003, over 300,000 jobs within the United States were lost to outsourcing, and the figures were expected to maintain an ascendant trend (Schniederjans, Schniederjans and Schniederjans)
non-oil trade deficit in 2007 alone. 70% of these jobs were in the manufacturing sector" (Thomas, 2009)
This would materialize in an increase in employment rates in India and other Asia-Pacific less developed countries, and their adjacent economic boost of 8 up to 10 per cent. While employment and economic state is expected to increase in the United States and the developed European countries, their rates are expected to be lower (Taylor, 2010)
is another of the many corporations to outsource their customer services call center, by setting up a contact center in Bangalore, India earlier in the year." (Binghame, 2004) Although these large computer industry organizations outsource only parts of their operations, many smaller computer companies throughout the industry have chosen to outsource their entire operations abroad with the majority turning to India's many outsourcing and communications companies