“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.
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