Global Outsourcing of American Products and Services
Global outsourcing of American products and services is a trend that is becoming increasingly popular with large corporations. For the same services provided in the United States, corporations are finding quality work in other countries for a fraction of the cost. The country currently at the forefront of this trend is India. This paper will discuss companies that outsource business to foreign countries and also why they are chose to. The ethical implications to both countries in these situations will also be discussed.
Many corporations are experiencing significant cost savings by outsourcing work to developing countries across the globe. Some advantages of global outsourcing are: technically skilled, inexpensive labor; multi-lingual workforce; potential 24/7 global tech support; global prestige; local market access advantages; lower duties and tariffs; low cost delivery; and after sales service. (http://www.wsa1.org) "Developing nations?benefit by providing local viable careers for their educated populations, attracting foreign investments in their infrastructure, and a general increase in the standard of living." (http://cseserv.engr.scu.edu) These advantages make a strong case for outsourcing, but there are many disadvantages that are being discounted or overlooked.
Some disadvantages noted by corporations are: political risk; loss of quality control over manufacturing, brand, and support; misrepresentation of the company; IPR concerns; brand management; channel conflict (gray market, territory); stricter labor laws; bribery and kickback pressure; and productivity. (http://www.wsa1.org) There is also the possibility of a negative impact ...