Offshoring is similar to outsourcing, as offshoring is a type of outsourcing. Offshoring/outsourcing basically is when a company or business has the work done in another country. The main incentives that come from offshoring are the facts that usually the labor is cheaper, they are able to enter different markets, or to overcome preventions, rules, or regulations that may be apparent in their home country but not in the country that they are outsourcing in.
An example of this was the Y2K incident in the year 2000. People were unsure that the software would be able to keep track of the right dates, and if it didn't, there would be major problems, especially in shipping companies run on those programs. People started scrambling for others who would be able to update the codes and programs quickly. A lot of this work happened in India, where there were people able to speak English and other people who were trained to work on the programs and software as well. So that was an example of offshoring because the work was dependent on people in other countries.
Friday, 5 March 2010
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I don't think that it is really fair that they are paying someone less to do the same job when they would have paid someone more if the "cheaper person" was not there. The companies are taking advantage of the cheaper labor. This helps them, but it takes away jobs from the people who live in the area where the company originally was. i think that it was interesting that people thought that the software would fail them and they relied on people in India to try and fix this problem. It seems like a lot of companies offshore/outsource to India. I think that it is interesting how dependent the U.S. is getting on other countries and the jobs that those people have.
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