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Outsourcing effect on organizations

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Group Members

Saima Tanveer KhanL1F09BBAM2036Sadaf Sardar L1FO9BBAM2022Madiha Ibrahim L1S09BBAM2105Maryam Riaz L1S09BBAM2116Syeda Farheen MateenL1F10BBAM0120Mian Usama Bilal L1F09BBAM2147

OBJECTIVE

General introductionWhat is important about the topicWhy we choose this topicImpact of study on society and individual

OBJECTIVES

Due to outsourcing how jobs are eliminated in developing countries like America and creating opportunity in under developing countries like Pakistan.

Globalization

Globalization as a set of processes which embrace most of globe or which operate worldwide; the concept therefore has a spatial connotation. On the other hand it also implies intensification in the level of interaction, interconnectedness or interdependence between the states and societies which constitute the world community (McGrew and Lewis, 1992, p 319)

Due to Globalization

Global village. Increasing the connectivity and the interdependenceProcess of interaction and integration Decrease cost of productionMultinational corporations Move Money, technology and raw materials

why this topic???

All that glitters is not gold Show you the affects of outsourcing all over the world especially Pakistan

Pros of Globalization

Companies either globalize or they die. (Jack Welsh, CEO of General Electric)

Free trade between nations.Increased liquidity of capitalGlobal mass media ties world together.Communication

Pros of Globalization

Increases the global village effects.Transportation of goods and services is easy.Reduction of culture barriers Interdependence of countriesCompetition increaseDevelop awareness among society

Pros of Globalization

Improve life standardEfficient use of resourcesIncrease the value of customerCost of production reduces and quality increaseSocially we have become more open and tolerant towards each other

Cons of Globalization

Flow of skilled person from underdeveloped to developing nations.Led to exploitation of labor.Immense pressureSpread of a materialistic lifestyle and attitude .International bodies infringe on national and individual sovereignty.

Cons of Globalization

Increase risk of diseases Increased possibility of economic disruptions in one nation affecting all nations.Made the rich richer while making the non-rich poorer. Social injustice, unfair working conditions as well as a lack of concern for the environment

Impact of Globalization:

Way for free trade and businessCommunication increaseCultural interminglingBecome more open and tolerant towards each other.

Outsourcing

outsourcing is more than a simple purchasing decision: no firm is completely self-sufficient, and all firms purchase some input from outside. Gilley and Rasheed

Purpose

FocusEconomically BenefitsEmployment and Staff

Pros of Outsourcing

Focus On Core ActivitiesCost and Efficiency SavingsReduced OverheadOperational ControlStaffing FlexibilityDevelop Internal Staff

If you deprive yourself of outsourcing and your competitors do not, youre putting yourself out of Business.(Lee Kuan Yew)

Cons of Outsourcing

Unseen costUncertaintyLack of qualityBad Publicity

Cons of Outsourcing

Effect whole economyRisk of SecurityFraudDependent factorsTied to the Financial conditions of Outsource Company

What is your opinion, why jobs are eliminated due to outsourcing in developing countries and increase jobs in those countries where labor is cheap like Pakistan?

Why jobs are eliminated??

ReasonsLoss of Managerial ControlEmployees as a CommodityCommunicational GapTechnological AdvancementFinancial Problems

Major Finding

Millions of Americans have lost their jobs and find less pay jobDestroyed 2 million blue color jobs but created 43 million white color jobsGood for under develop countriesLower prices and high quality

Interview

Manager of Merck &co. pharmaceutical companiesWe asked questions about what you think outsourcing is good or bad for organizations and their affect on the employees? Due to outsourcing job are eliminated in develop countries and create opportunities in under developing countries?

Major Finding

Increase efficiencyProvide employment opportunitiesImprove qualityExpanding companies

Conclusion

Only focus on skill and experience No interest in the welfare of the people because their interest is only in earning more profitsCreated a culture of job insecurityIncreased job competition Loses brand credibility Wider choice of products and lower prices

Recommendations

Develop a strong competitive edgePakistan need to market expertise Develop efficiency Need to Improve international standards qualities Adopt new technologyDevelop cordial and collaborative relationships with the foreign companies

Recommendations

Outsourcing is good equally if the strategies can be use for short terms ultimately organization expand their operation. (Merck &co. Manager)

Thank you