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