Outsourcing Trends

Improved Essays
Briefly describe the technologies that are leading businesses into the third wave of electronic commerce.

The key technologies that are leading businesses into the third wave of electronic commerce include mobile phones and tablets along with high-speed networks that allow users to access the Internet and smart cards and radio frequency identification devices (RFID) that are being used with biometric technologies such as retina scanners and fingerprint readers.

In about 100 words, describe the function of the Internet Corporation for Assigned Names and Numbers. Include a discussion of the differences between gTLDs and sTLDs in your answer.

ICANN (Internet Corporation for Assigned Names and Numbers) has the unique responsibility of managing identifiers known as domain names and matching them with their IP address registrars. In addition to overseeing domain names, ICANN is also responsible for setting standards for the routers that connect the Internet. Additionally, ICANN is responsible for overseeing and maintaining gTLDs (Generic Top-level domains). Examples of gTLDs are.net, .org, .com, and .info. Other domains such as .edu, .pro, .mil and .gov are known sTLDs (Sponsored Top-level domains). ICANN is not responsible for maintaining these; the responsibilities of maintaining these fall on other organizations. In one or two paragraphs, describe how the Internet changed from a government research project into a technology for business users. The Internet began to evolve in 1989 from a government research project into a technology for business users when the NSF (National Science Foundation) allowed MCI mail and CompuServe, two commercial e-mail services, to connect to the Internet. These connections provided a way for commercial organizations to send and receive emails with research and education communities. Then between 1991 and 1995 big changes occurred when the NSF eased its restrictions and eventually turned the Internet over to privately owned companies. This allowed organizations to sell Internet access rights to both individual and business called ISPs (Internets Service Providers). Businesses and individuals are then able to start communicating with other organizations and businesses connected to the Internet. In about 100 words, explain the difference between an extranet and an intranet. In your answer, describe when you might use a VPN in either. The Intranet is used to describe the information connection designed specifically for the internal communications between members of the organization such as executives, managers, and customer service. The Extranet is used to describe the information connection designed to provide specific external users, such as suppliers, customers and business partners, with limited access to certain files. Applying VPN (virtual private network) technologies allows both Intranets and Extranets to use the Internet to communicate with the outside world, yet have the same level of security over their data as they had previously with their use of private networks. Define “channel conflict” and describe in one or two paragraphs how a company might deal with this issue. Channel conflict is a situation, which occurs when a supplier or manufacturer bypasses its marketing channel of distribution and sells directly to the end-user. An example of this potential conflict can occur when a website is developed which allow consumers to order directly from the supplier or manufacturer. To avoid this, business partners must first take a close look at the problem and all the elements involved. Next, they need collaborate with their channel partners to share ideas and use data to identify new opportunities for all parties
…show more content…
Outsourcing as related to business processes refers to an organization contracting part of its work out to an external organization. An example of outsourcing is an organization that hires a law firm to review its contracts instead of maintaining an in-house lawyer. A risk associated with outsourcing is a conflict of interest between parties. A benefit associated with outsourcing is that an organization is able to take advantage of specialized skills and cost savings.

Offshoring as related to business processes refers to outsourcing working to an organization from another country to accomplish non-manufacturing activities in order to leverage cost advantages. Examples of offshoring include research and development, records/information management and purchasing. Risks associated with offshoring include communication and political barriers. The benefits associated with offshoring include cost savings, bigger and more talented worker pool, and the ability to accomplish tasks

Related Documents

  • Great Essays

    From the business point of view it is important to understand that outsourcing is part of globalization, and it benefits the company’s efficiency and it saves money in labor. Many Americans believe that outsourcings hurt Americans economy and are against the idea of taking Americans jobs to other countries. Bryson, a global economist for Wells Fargo said: “When jobs move from a factory in the South to one in Guatemala or China, it certainly has a negative impact on that community in the short run… But in the long run it makes things more efficient." (Hargreaves, 2012)…

    • 1324 Words
    • 5 Pages
    Great Essays
  • Decent Essays

    There is resemblance with portfolio management and outsourcing; portfolio manager never relies on single portfolio rather it distributes investment into various portfolios to minimize risk level. Similarly, outsourcing company needs to reduce its risk of outsourcing by sub-dividing operations and delegating among many suppliers to distribute risk rather concentrating risk on single source. Best of breed outsourcing means that organization should achieve high service delivery from…

    • 411 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Outsourcing has given companies a way to reduce the cost of operations, labor wages and also taking advantage of the reduce corporate tax rates(). For example a US company contracting employees from India to handle services can pay the employee a fraction of the price that they would pay an employee based out of the US. Another reason why companies have elected to outsource is because it has given them the opportunity access and hire world talent to handle their services; if a company is not an expert with a specific area such as IT and human resources (HR) they can contract an outside company to handle these services at a reduced rate. These key components listed leads to another main reason which is flexibility.…

    • 1175 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    P3: Explain the potential risks to an organization of committing to an e-commerce system Risks 1. Hacking In computer interacting, hacking is any technical effort to operate the normal performance of network links and connected systems. A hacker is any person engaged in hacking. Today, however, hacking and hackers are most commonly associated with malicious programming attacks on the Internet and other networks.…

    • 1208 Words
    • 5 Pages
    Decent Essays
  • Great Essays

    Identify the problem While companies have been outsourcing various activities for centuries, in recent decades, the increased growth of products and services that businesses have moved offshore has not only contributed to increased global economic growth and prosperity but also has faced much controversy and debate while Americans today attempt to protect the domestic business against offshoring. The overall problem includes transportation costs, disruption in innovation and productivity, reduction of quality of products and services, job displacement, and more importantly the loss of 3.3 million domestic jobs (Sao & Gupta, 2013). From an ethical standpoint, Kantian ethics states that people should never treat other as a “means to end, but…

    • 2963 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    A positive effect outsourcing has, in accordance to sustainable prosperity, would be the obvious lower price of goods for consumers. Also, many jobs are created because of outsourcing, which helps economies overseas as well as their populations. Many potential workers would be jobless without outsourcing and because of it, the prosperity for all these workers is something made possible. A potential downfall for this form of globalization is the inevitable exploitation of these foreign workers, being paid low wages and not receiving the benefits that they should be entitled to. It also takes away thousands of jobs that could be filled in the home countries of these…

    • 1035 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Payroll Research Paper

    • 75 Words
    • 1 Pages

    BPO is a particular process task for outsourcing. Payroll would be an example of BPO. BPO work could be either back office related or front office work. Things like marketing, answering calls, and technical support would be examples of front office work. Examples of back office work would be things like billing and purchasing.…

    • 75 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    I have to agree with the points that have been made by the author of the special report regarding outsourcing and offshoring. In my opinion, offshoring and outsourcing shouldn’t be regarded as threats to the United States. Both offshoring and outsourcing tactics had been used to cut costs for large-scale corporations. When these aspects of business became increasing popular for corporations, jobs began to transition from within their homeland bases to various offshore companies. Offshoring and outsourcing have long been debated as potential threats to domestic jobs.…

    • 431 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    The consequences of offshore outsourcing extends beyond the unemployed workers and it affects the customers, consumers, and the society as a whole. It is affecting the nation. The major controversial effect and impact of offshore outsourcing is the loss of American jobs to foreign workers, which makes the unemployed people depressed and lose sense of self-worth or confidence. Then, the majority of these types of workers is forced to rely on government aid and assistance to run a household.…

    • 371 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Ikea Outsourcing Essay

    • 850 Words
    • 4 Pages

    Outsourcing, a process of hiring another individual or company, either domestically or internationally, to handle the business activities for the firm. At this era, it is no longer an option as much as it is a necessity and has become a common business practice that allows small and medium size businesses to gain extra services and skills that are usually hard for them to develop due to shortage of manpower or financial restrictions, or maybe both. It allows the firms to be more focus on their core competencies, rather than tying up considerable company funds in something that can easily and cost effectively be done somewhere else and, more importantly, it will surely help the firm to cut the costs and improve their performances efficiently…

    • 850 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In order to stay in competition companies have to find innovative ways to grow and scale the business. Offshoring therefore helps companies become more flexible and helps them adapt to ever changing business environment. From an ethical stand point having a perspective where off shoring is used as a strategic plan to improve the growth of the business therefore will provide a higher utility overall. Offshoring can help a business adapt and innovate thereby adding more to the business bottom line. If the demand for the business product and services grow so will the workforce not just in the US but also in the countries where jobs were originally offshored.…

    • 485 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    The Backsourcing Process

    • 1824 Words
    • 7 Pages

    This leaves gaps and speculation as a common factor. The root cause of this is that organizations not wanting to air dirty laundry in a public forum; this is especially true when the sourcing organization will play a large part of the backsourcing efforts. Therefore, the right solution for backsourcing must be a well detailed plan which looks to undo the outsourcing of IT services while ensuring that the original outsourcing services can be done in-house to the standard that would support the organization’s essentials and objectives.…

    • 1824 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Essay On Offshoring

    • 792 Words
    • 4 Pages

    Blinder makes valid points on the rise of offshoring and how our economy may suffer from it. What he fails to mention is the fact that with America having such a dense population, the public can have a major effect on whether offshoring occurs, and if so to what degree it occurs. Self-protectionism is a key issue in American politics, such as the “Buy American Act”, and it is not to be taken lightly. Many jobs have already been lost to other countries through outsourcing. The self-awareness Americans have that offshoring is becoming an epidemic that will further threaten the American way of life, may be reason enough for companies to reconsider offshoring.…

    • 792 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    It also eliminates some conflicts with the workers and decreasing some wasteful activities such as payroll processing. Outsourcing can makes management team to devote its attention to refining…

    • 840 Words
    • 4 Pages
    Improved Essays