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Pursuing a Business Strategy of Offshoring to India - Essay Example

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The paper "Pursuing a Business Strategy of Offshoring to India" examines offshoring, its advantages and disadvantages; it makes specific reference to India as one of key offshoring players. It also refers to the HR implications that companies will face when they pursue offshoring…
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Pursuing a Business Strategy of Offshoring to India
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Download file to see previous pages Offshoring has been a modern trend in business management. Offshoring is actually outsourcing that crosses national boundaries. It means giving some business functions previously done inside the organization in another country. The organization has to focus on its core competencies and skills and outsource the other important functions to companies located in other countries. The example of Nike is very characteristic. Nike preferred to focus on marketing and product design since these are the sectors that it believes they are its core competencies and outsource production to other countries.
There has been a long discussion concerning outsourcing and British Trade Unions and US politicians have been campaigning to stop offshoring. The logic behind their campaigning is that outsourcing contributes to the rise of local unemployment rates.
On the other hand, recent studies have shown that for every dollar in US outsourcing created value of 78 cents whereas for the foreign country the value was 22 cents.
This positive side is reinforced by the fact that offshoring contributed to the economic development of underdeveloped countries. In addition, it has been argued that professionals in countries such as India exhibit a high level of professionalism and education than their counterparts in Western countries.
Offshoring has also certain problems i.e. the difference in cultures and communication problems. However, it can act as a talent pool to countries engaged in offshoring (Haag and Cooper 2006). ...Download file to see next pagesRead More
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