Outsourcing
Date: 2015-10-07; view: 842.
Unit 7 Outsourcing
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The new global shift
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Conditionals 1 and 2
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.Career 'skills; Making suggestions,
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Dilemma: Going offshore
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The great migration
Keynotes
Globalisation is
forcing businesses to make cost savings by reducing operating costs.
One way to do this is by outsourcing - transferring business processes such as order processing or call centre management to outside suppliers and service providers. Offshoring is a new form of outsourcing where businesses relocate back-office operations in overseas facilities where labour costs are lower.
Many companies are now setting up facilities in countries that can provide services at a far lower cost. What do you think the advantages and risks are of going offshore?
Listening 1Now listen to Lincoln Allenson, the director of an offshoring
consultancy, and compare your answers. Listen again and make notes on the following.
1 the types of work that can easily transfer overseas
2 factors affecting the choice of location
3 the risks of outsourcing abroad
Speaking fComplete the table with the following countries.
India Philippines Ireland USA
| Country | ||||
| Average annual salary of programmer (US $) | 70,000 | 29,000 | 10,000 | 6,500 |
| Total workforce | 140m | 1.8m | 439m | 32m |
| No of university graduates (per year) | 1.2m | 30,000 | 700,000 | 380,000 |
QHow do you think these figures could influence companies considering outsourcing part of their operations?
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