Off-Shoring and Staff Augmentation

Paper Summary:

Offshoring projects are costly and complicated, and their payoffs are uncertain. As jobs are moved overseas, this controversial strategy creates an anxiety filled atmosphere, for those remaining onboard. This paper shows that job security is one of the primary factors in job satisfaction, and with the threat of offshoring looming overhead, significant damage can be caused to employee morale. The paper shows that, in addition, there are many functional and structural challenges that lie ahead for companies who augment their staff through offshoring. Despite these challenges, offshoring is certain to be an important strategy for many organizations. As such, this paper shows that analyzing current trends in offshoring and staff augmentation is an important topic.

Outline:
Introduction
Evolution of Outsourcing
Types of Jobs Being Off-shored
Destination Countries
Reverse Offshoring and Multi-shoring
Conclusion
References

From the Paper:

"Political stability of a country is also a significant factor in whether or not the country will be involved in offshoring trends. But, although political stability is important, according to Shramm (2004), economic conditions are even more critical (4). Creating foreign operations is a large investment for organizations, and even building outsourcing relationships can see significant time and money invested into developing that relationship. For this reason, it does not serve a company to make such an investment in a country where economic fluctuations , such as significant shifts in currency, in relation to the dollar, or even rapidly rising wages, can eat away at the savings the organization hopes to realize over the course of several years."

Sample of Sources Used:

• Chase, A. May-June 2004. Outsourcing allows utilities to cut costs, focus core business. Electric Light & Power, 82(4): 48-49.
• Eckle, J. 6 Feb 2006. Career watch. Computerworld, 40(6): 38.
• Hodges, M. & Block, D. Jan 2005. Business process outsourcing: Current trends and best practices. Contract Management, 45(1): 8-16.
• Offshoring interview: Will the theory be proved in practice? 17 Feb 2005. Europe Intelligence Wire: NA.
• Roztocki, N. & Fiermestad, J. 2005. Offshoring withot profit or the new global model? Journal of Information Science and Technology, 2(2): 1-4.

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