Additional+Outsourcing+Articles


 * __Additional Outsourcing Articles__**

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__Five Offshore Practices That Pay Off__ - In this slide, Manjeet Kripalani writes about how many companies are outsourcing and having difficulties, but are pushing through. He writes that many companies like Bank of America have laid off thousands of employees because of outsourcing and that, now, companies like Bank of America are giving there employees a 6-8 month notice before the company outsources. Though this is helpful, there will still be those who can't find jobs quickly and will end up unemployed after the outsourcing takes place. Kripalani writes that people should keep on the watch for companies outsourcing because outsourcing is now another tool for profit under the belt of companies. 1. - In this slide, Kripalani writes about how the first practice is to make sure that offshoring is a good idea. He writes that sometimes companies don't need to outsource and could stimulate/ create competition at home using other methods. He writes that outsourcing is just one method to increase production and that just because some companies are doing it, doesn't it's the right thing for every company 2. - Kripalani writes about how businesses that plan to outsource should decide whether they set up their own subsidiary offshore or contract with outside specialists. He writes that companies that set up their own subsidiary offshore will be able to have a grip on proprietary technology and processes, but it may cost more. On the other hand, he writes, that companies that contract with outside specialists will experience the vice versa. He writes that the companies need to weigh the options 3. - Kripalani writes about how companies who are outsourcing will need to have some kind of retraining system for new employees and employees who will be experiencing a different culture. This is because one, the company will be laying off many employees when they outsource and will have to compensate with new ones at their new destination, and two, the company will be in a new country with different rules the old and new employyes will have to follow. 4. - Kripalani writes about how companies who are outsourcing need to be aware of how much time and effort they need to put into it. He writes that most companies won't save much after the intial year unless the company puts more time and effort into management. He also writes about how quality control is important. 5. - Kripalani writes about how companies who are outsourcing and contract with outside specialists need to regard their offshore partners as equals. He writes about how one company recalls that it didn't reach its full potential because it told the offshore partner what the company wanted to do instead of listening to the offshore company for feedback or other ideas.

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__Can Latin America Challenge India? "Nearshore"-__ outsourcing to a country near the companies home country; usually a country on the same continent as the outsourcing company's home country - In this article, Geri Smith writes about how "nearshoring" in Latin America could be more profitable for companies than offshoring to India. One reason it could be more profitable for U.S. companies is because India's wages are constantly growing because of develpoment and that it could meet or even surpass the wages in Mexico and other Latin America countries. This would mean more companies from the U.S. would "nearshore" to Mexico and Latin American countries because they are closer, are in the same time zone, and may even have lower employment wages. Overall, this would cut costs and increase profit. Another reson it could be more profitable to "nearshore" is because "due to U.S. legislative restrictions, certain kinds of projects involving sensitive aviation and energy technology are more likely to go to Mexico than to India, a nuclear-power nation." Other reasons U.S. companies would want to "nearshore" to Mexico, Brazil, and Chile include: "the first two because they have the critical mass, big company clients, and enough students graduating, and Chile because it's savvy as far as globalization goes and has been working hard on bilingual education."

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__Boeing's Global Strategy Takes Off__ - In this article, Stanley Holmes writes about how Boeing isn't just outsourcing to reduce costs, but also to fin skillful employees that can create or build what Boeing wants at a fast and possibly affordble rate. Boeing has outsourced to places in Russia and India to utilize Russian aircraft engineers and Indian software geeks because of their high technical skills and cheap wages. He writes that "following September 11, 2001, Boeing laid off 38,000 people over a four-year span. The Society of Professional Engineering Employees in Aerospace, or SPEEA, lost more than 5,000 union members even as Boeing was hiring more than 1,000 Russian aerospace engineers for its Moscow Design Center." This had many Boeing employees worried about outsourcing more, but Boeing has discussed creating a permanently stable engineering workforce, which has calmed current employees. He writes that, overall, Boeing is determined to cut costs so they can keep up with the competition, but at the same time, build the carbon-fiber based 787 Dreamliner. Hopefully, Boeing doesn't experience anymore turbulence.

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