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
The shift into a new economy based on information technology is well underway." (McGarvey, 1996) the old way of doing business has not been conducive to meeting the demands of the new global economy
has become so widely known that its executives feel that the people might not be able to accept "Made in U.S." On the Apple products as readily (Corbett, 2004)
Despite having positive economic benefits for some, this trend could also seriously impose quality concerns as well. Discussion Faced with long waiting lists, the high cost of elective treatment and fewer barriers to travel, the idea of availing healthcare in another country is gaining greater appeal to many (Carrera, 2006)
It is often the case that the travel costs are significantly less than the amount saved in the healthcare procedure. Among some of the popular types of procedures to travel for are cosmetic surgeries and dental procedures that are luxury healthcare products and procedures that can be acquired at a great savings in some countries (Connell, 2006)
Reduction of scope and an increase in the skill levels of the organization is one of the main cost saving accompanying advantages. With the help of outsourcing the companies usually have the power to restructure the costs with additional negotiations as quality levels of the company are decided (Bragg 60)
Outsourcing in Foxconn Foxconn is one of the world's leading and most famous electronic manufacturing service providers. One of the most recent outsourcing-based moves that have been made by Foxconn includes terminating more than a million employees and replacing these with robots (Brown and Wilson 88)
firms that are involved in outsourcing have been blamed to walk out of the fair share of the taxes that they are liable to pay. The second important fact that was added in the criticisms against outsourcing was that the companies completely transfer the controls and regulations of their workforce for a certain business unit to an external entity that is very much in relation to the costs that are involved in the outsourcing (Burkholder 98)
There is no doubt about the fact that the efficiencies that are shown by the robots is much higher as compared to what is shown by the human beings. Paychecks, increases in salaries and wages, food and lodgings are not required by the robots whereas these are the main requirements of the human employees (Corbett 25)
S. Chamber of Commerce is that outsourcing has been the main reason of a great improvement in the American business manufacturing section (Delen 23)
based companies in 2007 after outsourcing their it-based business units. Great changes have been seen in the business models and in the face of a great demand of saving costs, outsourcing has been chosen as the main option (Haugen, Musser, and Lovelace 44)
Although there are companies who outsource their business when there is no need to offshore. When there is a contract based agreement between two organization for sharing services and payments, it is termed as outsourcing (Hira and Hira 78)
It has been reported that many employees in Foxconn are now improving their skills in high technology fields so that they can contribute more in the manufacturing sections. Thereby replacement of the human employees with the robots can be helpful as greater time is now available to the human employees for improving their work-based skills and to learn more in newer and innovative tasks (Hirschheim 34)
Thereby in the modern days of intense competition, affording mistakes and humanly errors is not affordable. Thereby these human errors have been replaced by the machine perfection where lesser number of robots will be responsible for doing the mind numbing and repetitive tasks in the manufacturing sections (Schniederjans, Schniederjans, and Schniederjans 100)
One of the main causes includes union reduction also referred to as union busting. There are a number of regulations that are used to reduce the hold of the unions on the organizations as in the presence of these rules, great deal of the bargaining power is lost by the union workers thereby the organizations have more powers to shift the workers overseas (Sparrow 29)
With the help of accessing these mares, the American organizations have been able to strengthen their bottom line business units, have greatly reduced on the consumer prices while focusing more on the product quality, reducing manufacturing costs and increasing operation effectiveness. A number of reports have highlighted the advantages that have been seen by the American organizations after outsourcing their business operations (Wijers and Verhoef 87)
Thereby one of the main facts that can be highlighted here is that if more than a million robots are hired in the manufacturing sections, the human employees that have been replaced can be retained for the maintenance and management of the automated lines. Thereby instead of hiring additional employees for the maintenance of automated lines, the same employees will be shuffled thereby causing additional cost savings (Zhang and Alon 66)
Cost successful information technology is coming on the scene daily making it even easier for companies to flawlessly work together and communicate as one virtual corporation. So, the profit reason coupled with cost-effective technology corresponds to a fundamental guarantee that outsourcing and offshoring will be alive and well throughout the 21st century (Chestnut, 2012)
For certain jobs offshoring could well be a good solution. But when offshoring is used to save money and at the same time degrades critical business attributes such as quality, reliability, integrity and security, then it is not just a bad solution, it can easily become a financial and PR disaster (Gibbs, 2004)
The well-known paradigm of trade theory, which conceptualizes the production procedure as generating finished goods from bundles of inputs combined at a single plant, was well suited for studying the trade of yesteryear. But the globalization of production and the developing international division of labor suggest the need for a new model, one that puts task trade at center stage (Grossman, 2006)