Presented By: Ben BarnesSidney Ellis

Subcontracting a process such as product design or manufacturing to a third-party

company

Redirecting time and energy to core competencies

More efficient use of land, labor, and capital

Takes advantage of information technologies and other resources

Risk Management Staffing issues/

Larger talent pool Operational

Expertise Capacity

Management

Globalization Increased Suppliers India vs. China BRICM increasing

capabilities

Person-to-person Offshoring

Smaller scales Online tutoring,

web and software development, writing and translation services

Value of a Dollar Rupee up 11% vs.

U.S. Dollar in 2007 Indexing prices Currency Hedges

Moving from Big Cities

Oversaturation Shortage of Talent Second-tier cities

RIM Offsite

management of servers, databases, networks and security

Growing about 20% per year

Smaller Contracts

Call Centers Most mature

segment Huge turnover “client-centric”

solutions

E-Commerce◦ electronic funds transfer◦ supply chain management, orders and

shipment information ◦ inventory management◦ E-mail and messaging◦ Accounting and finance systems

• 150 senior executives that were interviewed at Fortune 1000 companies, 19% stated that breaking cultural barriers was their second largest concern after loss of operational control.

• The Problem:• Language– 1.2 billion people speak English, but 380 million are

native speakers.– Proficiency- written test given vary from actual oral

test. • Cultural barriers are often silent unlike language.– Norms– Misinterpretations

Negotiation Styles “High Context Cultures” (Highly Interdependent,

relational)◦ Maintaining reputation or honor considered vital◦ Minimizing confrontation or surprises during relationship

“Low Context Cultures” (Factual Oriented)◦ More open to change◦ Competition and confrontation

Cause a clash◦ American considered low context- focus on figures and

desire quick conclusions, which may be considered aggressive to someone from high context, which is used to taking time to develop a relationship

Access, storage and transfer of data Compliance issues with regulations and U.S. Privacy

laws Most worried problem is: A lot of firms deal with the same companies overseas.

◦ An employee that is located overseas sells secrets to competitor

U.S. has headed most of this off by signing contracts that are under U.S. Law

During training phases of applications, fake data is used

Due Diligence for customers

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