Offshore Outsourcing Advantages And Disadvantages

1743 Words 7 Pages
Offshore outsourcing is a phenomenon that may sound like a foreign term, however, the earliest documented act of offshoring in the United States was during the latter half of the 19th century. According to the Merriam Webster online dictionary, the site states that outsourcing is essentially to obtain goods or services that are needed by a business or a company under contract of an outside supplier. In addition, the act of outsourcing is a century old however, major corporate companies such as Apple, Microsoft, Intel, Samsung, and numerous other companies still use this method to cut back on costs. United States earliest documented act of offshoring was during the latter half of the 19th century. General Electric, a global digital industrial …show more content…
Losing control over an outsourced operation can provide very high costs with a sub-par product that was developed behind schedule [Outsourcing Risk Management]. An example would be the outsourcing disaster with the US Navy and EDS. In the year 2000, both Navy and Marine Corps contacted EDS to provide voice, network, video, desktops, and system training for their members. EDS accepted the contract in 2000 and was contractually bound to finish until 2004. Critical problems arose throughout the project as the Navy claimed its own share of responsibility, admitting that indecision among its personnel lead to EDS receiving poor direction. Due to the Loose contract language had left EDS vulnerable to some costly and unforeseen obligations, EDS had to close in the third quarter of 2004 with a loss of $153 million.[Biggest Outsourcing Failures]. Secondly, another disadvantage that offshore outsourcing provides is the lack of face time. Having physical contact with your workers affect the performances tremendously according to Ed Frauenheim, a journalist who shadowed an engineer from a Silicon Valley company. He noted that throughout his day shadowing the workers, was not shocked to see how much physical contact is done throughout office hallways. He explains that “Good software development requires …show more content…
All three presidential candidates addressed offshore outsourcing to various degrees. Such as Bernie Sanders who brought up the Outsourcing Prevention Act, Trump administration with their tariffs, and Hillary who seemed neutral in my eyes. Sander’s goal with his prevention act is completely putting an end to all foreign companies from sending jobs overseas. The act also includes strict tariffs such as a 35% tax or stricter tariffs. His goal with the act was having the United States bring back “ good paying jobs back to the United States of America”. By doing this, he plans to stop all foreign and to bring them back into America. As for Donald Trump on the other hand, the Trump administration has discussed relaxing business regulations and backing away from campaign pledges to impose tariffs on companies that move jobs abroad, according to the New York Times. Lastly, Hillary Clinton’s view on offshore outsourcing seemed neutral. Although in the past she had criticized the Bush officials during their presidency, she now takes back her claim and states ““Well, it’s been going on for many years now, and it’s part of our economic relationship with India. And I think that there are advantages with it that have certainly benefited many parts of our country, and there are disadvantages that go to the need to improve the job skills of our own people and

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