Facebook Pixel Code
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

American Offshore Outsourcing Essay Example

Show related essays

American Offshore Outsourcing

American Offshore Outsourcing. Although outsourcing is not an entirely new concept, recent emphasis has changed the way we perceive it.It is important to clarify the key terms ‘outsourcing’ and ‘offshoring’, to prevent any confusion about their meanings and usage. Greaver (1998) defines ‘outsourcing’ as “the act of transferring some of an organisation’s internal activities, […] decision rights [and factors of production] to outside providers, as set forth in a contract.” He points out that the difference between employing consultants and outsourcing is the recurrent and contractual nature of the latter. By “factors of production”, we mean the resources that are necessary to enable production, namely human resources, real estate, machinery, equipment and technology.

“Decision rights” refer to the decision-making responsibilities concerning the organisation’s activities (Greaver 1998). ‘Offshoring’, on the other hand, entails relocating a company’s business processes such as production, manufacturing or services to another country (Offshoring 2006). India and China are excellent examples of offshoring countries, each being leaders in production and service offshoring. In both countries’ cases, the majority of a company’s business processes are moved to a foreign location which offers lower operational costs.A distinction should be made between ‘offshoring’ and ‘outsourcing’. The two terms share some similarities such as in hiring overseas subcontractors. However, they differ since ‘offshoring’ entails the transfer of activities to overseas operation facilities of the same company. In addition, the term ‘nearshoring’ is distinct from ‘offshoring’ insofar as the foreign location to which business processes are transferred is in relatively close geographical proximity (e. from the U. to Mexico), while ‘inshoring’ refers to choosing a location within the same country (e. London to Manchester), and ‘bestshoring’—choosing the “best shore” based on various criteria (Offshoring 2006). Other key terms which merit clarification include ‘Business Process Outsourcing’ (BPO), which refers to the outsourcing of entire business functions (e. IT, Customer Service, etc), and ‘bodyshopping’, which refers to the use of “offshored resources and personnel to do small disaggregated tasks within a business environment, without any broader intention to offshore an entire business. American Offshore Outsourcing.

Close ✕
Tracy Smith Editor&Proofreader
Expert in: Business, Macro & Microeconomics, Management
Hire an Editor
Matt Hamilton Writer
Expert in: Business, Human Resources, Finance & Accounting
Hire a Writer
preview essay on American Offshore Outsourcing
  • Pages: 71 (17750 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
WE CAN HELP TO FIND AN ESSAYDidn't find an essay?

Please type your essay title, choose your document type, enter your email and we send you essay samples