unknown@wiki 【EC】outsourcing and offshoring

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What is Outsourcing or Offshoring? (LEVEL: EASY)

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Outsourcing On the Increase

International financial firms are on a course to increase by five times the number of jobs they move overseas. This is according to a new report from the accounting company Deloitte Touche Tohmatsu. This shift to outsourcing, or offshoring, will help cut staffing costs. Some companies will see up to seven percent of their global staff working in offshore bases. Two million financial services jobs in IT, HR and call centers will be based offshore by 2010. The good news for investors is the tripling of savings from $5 billion to $16 billion. Outsourcing has the true potential for huge cost savings.

Deloitte said outsourcing is mistakenly being used as a short-term strategy because many companies experience a sharp fall in cost savings after several years. The report stressed that: “Offshoring is not a straightforward cost savings tactic. Many organizations …experience ‘offshore fatigue’”. The advice from Deloitte director Chris Gentle was to think long term and not to “dabble”. He said: “Financial institutions that make a half-hearted attempt at offshoring are exposed to all of the risk, while enjoying only some of the benefits. The message is clear…Stay home if you’re not committed”.

CHAT: Decide which of these topics or words are most interesting and which are most boring.

Financial firms / overseas jobs / accounting company / staffing costs / offshore / IT / HR / investors / business jargon/bstrategies / fatigue / risks / benefits / staying at home

DISCUSSION QUESTIONS:

1. What do you think of outsourcing?
Its a good way to reduce comapiny's cost. but also it have disadvantage.
confidential information might be leaked.


2. Which word do you like better, ‘outsourcing’ or ‘offshoring’?
I like offshoring better than outsourcing.

3. How would you feel if you lost your job because of outsourcing?
I would feel it can not be helped. I would try to develop myself more.
I know many capable people in developing countries but its hard for them to get a stable job. On the other hand people in developed countries like japan can get a job easily even though they dont have abilities or motivation. Its unfair.
Its reasonable to give jobs to capable people regardless of their nationality.
Equal opportunities have to be given to anyone.


4. Do you think outsourcing damages some people’s lives?
yes i do. But

5. Do you like staying at home?
No. I wanna work internationally. its challenging .


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on a couse to increase by 5 times the number of jobs
locally and internationally
procedure
can you reflesh the window?
dabble: dont work professionaly 手抜きをする
fatigue: 疲れ
hal-hearted: 中途半端な

slow resolution times
slow responce time
effective

multinationals
business jargon
gobbledygook


[edit] Outsourcing and Offshoring: Compare and Contrast
Note that “outsourcing,” “offshore outsourcing,” and “offshoring” are used interchangeably in public discourse despite important technical differences. To be consistent, “outsourcing,” in a corporate context, represents an organizational practice that involves the transfer of an organizational function to a third party.[1] When this third party is located in another country the term “offshore outsourcing” makes more sense. “offshoring,” in contrast, represents the transfer of an organizational function to another country, regardless of whether the work stays in the corporation or not.[2] In short, “outsourcing” means sharing organizational control with another organization, or a process of establishing network relations within an organizational field. "Offshoring,” on the other hand, represents a relocation of an organizational function to a foreign country, not necessarily a transformation of internal organizational control.