International Outsourcing Case Analysis

The comparative advantage is an economic theory that motivates and supports international outsourcing. It states that if an outside company, regardless of geographic location, can perform work tasks more productively, they should be allowed to do the work anywhere in the world. Therefore, core competencies can be focused on and greater success in their respective markets will be realized. This will assist in the long-term survival of any business (Mohiuddin & Su, 2013). However, using Bazerman and Moore’s (2013) steps for evaluating decisions, a full realization of the problem, criteria, and value placed on priorities will help determine the best decision for outsourcing offshore or not.

Steps in Evaluating Decisions The process of decision

When the right problem is not articulated, organizations miss opportunities, waste resources, and result in pursuing initiatives that aren’t relevant to the cause (Spradlin, 2012). Clearly and concisely identifying the true problem, is the most important factor in finding the best

For example, China’s minimum wage just increased by 20 percent (Peters, 2015). Companies wanting to maintain low labor rates may have to move around, which is costs money and time. Having to deal with international rules can also be challenging; it requires skill and acceptance of higher risk to the organization (Schniederjans & Zuckweiler, 2004). Outsourcing is also contributing to income inequality by reducing the middle class. It is reported that an estimated 15 million jobs will be outsourced overseas by 2015 and a survey of 275 U.S. companies indicated that 47% of jobs moved offshore were highly skilled and paid over $50,000 (Bryan, 2011). Maintaining property rights and control over quality were also highly valued criteria that risked being compromised with international