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Outsourcing: Organizations
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Outsourcing can be a boon as experienced by organizations across industries and market segments. However, all discussions relating to the negative fallouts of outsourcing remain restricted to the job market. Is it time to look at other cons of outsourcing ?
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Outsourcing and [O]ffshoring are used interchangeably in public discourse despite important technical differences. Outsourcing involves contracting with a supplier, which may or may not involve some degree of offshoring. Offshoring is the transfer of an organizational function to another country, regardless of whether the work is outsourced or stays within the same corporation[3][4].
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With Democrats taking majority control in Congress and presidential campaigning well underway, the topic of outsourcing and its impact on U.S. jobs will once again become a significant campaign issue. Offshore outsourcing providers experienced a slow down of growth amongst a wave of backlash in conjunction with the 2004 presidential election, and the potential is there for a similar occurrence in 2007 and 2008. Even though outsourcing has become a mainstream activity and organizations are better prepared to handle employee backlash and public outcry, Diamond believes that many organizations may begin to delay major outsourcing decisions as the election nears.
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Jean-Francois Loche, Vice President and CIO of Nissan Europe, made an overview of his organization's broad use of technology outsourcing over the years. He highlighted the differences in outsourcing approaches by major Nissan divisions - the U.S., Asia and Europe and described how outsourcing blends in with Nissan core business planning process. Loche described Nissan IT group's BEST value up strategy, including key components Business Alignment, Enterprise Architecture, Selective Sourcing and Technology Simplification.
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To the uninitiated, call center outsourcing projects can appear quite complex, as they involve a wide variety of interrelated tasks and require participants from nearly all areas of an organization. The first implementation is a significant learning experience to all involved, as few internal projects have the same scope, with the added variables of an external vendor and an international destination.
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The U.S. Chamber of Commerce is among the organizations that support outsourcing because of the benefits it will bring. The Chamber lists those benefits as higher stock prices, lower prices for consumers, and a more efficient economy.
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