Offshore Outsourcing

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Offshore Outsourcing

• Good or Bad?

Jason Mitnick
MGS 3040-02
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Offshore Outsourcing

• Offshore outsourcing is the movement of white
  collared jobs abroad.
• AOL, Dell, American Express, and Delta Airlines
  send jobs overseas.
• Call centers, telemarketing, financial analysis,
  and banking and insurance positions are the types
  of jobs sent abroad to low income countries like
  India.

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Going Abroad is Easy

• Transition translates overseas
• System sketches can be the same as the homeland
  version
• New technology
• Internet
• Broadband
• Video

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AOL Call Center System Sketch
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Pluses for Offshore Outsourcing

• Costs less
• Lower wages for foreign employees
• Costs less to run business
• Savings are passed onto customers
• Build relationships with customers outside U.S.

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Negatives for Offshore Outsourcing

• Potential for lower quality service
• Thick accents
• Rude comments
• Lack of knowledge
• Take away jobs from U.S. citizens
• Jobs lost to date
• 300,000-995,000
• Projected job loss
• 3.3 million to 6 million
• Jobs at risk
• 14.1 million

Sources Goldman Sachs, Business Week,
Economy.com, Forrester Research, UC Berkley
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Sources http//offshoreitoutsourcing.com/
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Fin

• Jason Mitnick