Outsourcing Labor

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Outsourcing Labor

• Justin, Jun, Nick, Martin, Kristian, Nate

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Table of Contents

• Outsourcing
• Reasons
• Problems
• In the U.S
• Countries
• Solutions
• Class Discussion

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Outsourcing

• Labor
• Defined
• subcontracting a process/external service
  provider.

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Outsourcing

• Decision
• Supplier proposals
• Supplier competition
• Negotiations
• Contract finalization
• Transition

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Reasons

• Cost Saving / Restructuring
• Quality
• Knowledge
• Operational expertise
• Staffing issues
• Capacity management
• Reduce time to market
• Risk management
• Time Zone

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Problems

• Public opinion
• Against shareholder views
• Failure to realize business value
• Language skills (Call Center)
• Social responsibility
• Pollutions
• Quality of service (Less than promised)
• Price Competitors
• Staff turnover
• Companies knowledge
• Qualification of outsourcers
• Productive (Decrease)

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In the U.S

• Outsourcing became problem with political
  election in 2004 with John Kerry
• 71 of American voters believe that outsourcing
  hurt economy
• 62 believe we should take legislative actions

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Countries
Top Outsourcing Countries 1. India 2.
China 3. Malaysia 4. Thailand 5.
Brazil 6. Indonesia 7. Chile 8.
Philippines 9. Bulgaria 10. Mexico
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Solutions

• In sourcing
• Not importing jobs
• Relocate within U.S
• Comprehensive legislation

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Class Discussion

• Is outsourcing good for our economy?
• What are ways to avoid outsourcing?
• Is outsourcing sustainable?
• What are the intentions of outsourcing?
• Kant vs. Mill