Global Outsourcing of American Products and Services

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Global Outsourcing of American Products and Services Global outsourcing of American products and services is a trend that is becoming increasingly popular with large corporations. For the same services provided in the United States, corporations are finding quality work in other countries for a fraction of the cost. The country currently at the forefront of this trend is India. This paper will discuss companies that outsource business to foreign countries and also why they are chose to. The ethical implications to both countries in these situations will also be discussed. Many corporations are experiencing significant cost savings by outsourcing work to developing countries across the globe. Some advantages of global outsourcing are: technically skilled, inexpensive labor; multi-lingual workforce; potential 24/7 global tech support; global prestige; local market access advantages; lower duties and tariffs; low cost delivery; and after sales service. (http://www.wsa1.org) “Developing nations…benefit by providing local viable careers for their educated populations, attracting foreign investments in their infrastructure, and a general increase in the standard of living.” (http://cseserv.engr.scu.edu) These advantages make a strong case for outsourcing, but there are many disadvantages that are being discounted or overlooked. Some disadvantages noted by corporations are: political risk; loss of quality control over manufacturing, brand, and support; misrepresentation of the company; IPR concerns; brand management; channel conflict (gray market, territory); stricter labor laws; bribery and kickback pressure; and productivity. (http://www.wsa1.org) There is also the possibility of a negative impact to the American job market. Issues surrounding this impact to our job market are not frequently mentioned during discussions about whether or not to send business overseas. Finally, there are many ethical questions and dilemmas involved with these decisions. These ethical dilemmas affect individuals in America as well as those in the overseas countries. In spite of these disadvantages, many major corporations have decided to outsource to foreign countries, indicating that the advantages are worth the risk. Several corporations have already experience... ... middle of paper ... ...e Web. Call Center India (November 19, 2003); More U.S. Jobs, especially in Call Centers, headed for India, http://callcenterinindia.blogspot.com/ Retrieved on November 25, 2003 from the World Wide Web. Ranjit Shastri (October 6, 2003); An Overview of India’s Call Center Industry, http://www.tmcnet.com/tmcnet/articles/2003/100603rs.htm Retrieved on November 25, 2003 from the World Wide Web. Ronil Hira (October 20, 2003); Testimony to the Committee on Small Business, http://www.ieeeusa.org/forum/POLICY/2003/102003.html Retrieved on November 25, 2003 from the World Wide Web. Nicholson & Sahay (November, 2001); Some political and cultural issues in the globilisation of software development: case experience from Britain and India, http://les1.man.ac.uk/accounting/Staff/Academic/B_Nicholson/I&Opapernicholson_sahay.pdf Retrieved on November 25, 2003 from the World Wide Web. CIO.com (June 5, 2003); Global Outsourcing and L-1 Visas, http://comment.cio.com/ Retrieved on November 25, 2003 from the World Wide Web. Walter Williams (2003); Minimum Wage Tip-Off, http://www.washtimes.com/commentary/20031114-081940-9148r.htm Retrieved on November 25, 2003 from the World Wide Web.

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