Outsourcing and Offshoring
Employment
Emphasize the number of domestic jobs
offshore-outsourcing
Entails the same service being conducted by sub-contractors in others countries, who are not employees of the organization
near-shoring
Fortune 1000 companies are starting to choose Latin America because of its proximity to the U.S., shared time zones, and accent neutrality
offshore-insourcing
Transpires when the company locates a facility outside the home country while hiring and managing the residents of the country as direct employees to provide services to clients in the home country
Customer insecurities about personal data
independent third party verification, provide forms of assurance to customers (i.e. VeriSign symbol)
Government incentives
tax avoidance
Retain flexibility
the night shift in North America occurs at the same time as the day shift in much of Asia
Communication
Accent/Identity/Location neutralization
Cultural Disconnection
Cross-culture training about holidays, typical activities of the American family, popular television shows, and even traits of New Yorkers/Texans
Access to highly educated professionals
Manage call centers, perform marketing research, provide medical analysis, and process accounting functions
onshore-outsourcing
Occurs when a hospital/financial services firm/software company offers the same service but employs an outside company that is located within the home country
near-shoring
Occurs when the service is provided to domestic customers by representatives located in another country that is geographically closer to the home country
Cultural Disconnection
Tailor the physical space of the call center to the culture of the callers
Inexpensive
Wages are lower, benefits are usually non-existent, and it's easier to lay-off employees in case market demand shifts