Presented By: Ben Barnes Sidney Ellis. Subcontracting a process such as product design or...
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Transcript of Presented By: Ben Barnes Sidney Ellis. Subcontracting a process such as product design or...
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
YouTube - ABC News : 20/20 : Myth : Outsourcing Bad for America