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Offshoring
Off shoring, or outsourcing, means that a company gives out contracts to people in other countries to complete a part of their jobs. This means that the company gets the work done through people who are not part of the company but are independent workers. The opposite of outsourcing would be hiring regular employees that would be on the payroll on the company and would register in the books as part of the company’s workforce. Outsourced employees, however, are not regular employees and even though they are being paid by the company, they are not on the regular payroll. One of the biggest trends that have come up these days is that many companies are giving a lot of work to third party vendors. For example, a manufacturing company does not handle its own distribution, rather it outsources it to some distribution firm. Similarly, many Western companies are outsourcing jobs to foreign countries in order to save up on costs. These jobs include customer service calls, manufacturing of some smaller parts of a larger item, etc. The main reason is that outsourcing such jobs means lowered costs for the Western companies. Thus, it would be right to say that organizational initiatives benefit the management more than the workers.
If we were to view the staffing and delegating methods in their simplicity, we would find that it was traditional to hire employees and to have a company’s own departments regarding a certain specific job. For example, employees would be hired to work in factories and a marketing department would handle the marketing activities of the product produced. These days the trends are changing and many companies are looking to have certain jobs done by third parties in order ...