Give your Personal opinion and Discuss Outsourcing and Offshoring have been hot
ID: 2462655 • Letter: G
Question
Give your Personal opinion and Discuss Outsourcing and Offshoring have been hot topics in the past. Many companies are now selectively reversing the long-term trend of outsourcing. The "de-verticalizing" outsourcing process - when a company sent many of its functions between raw materials and the finished product to third parties - is now being partially reversed with "re-verticalization." In your opinion, what are the pros and cons of outsourcing/offshoring vs. U.S. companies reversing that trend and bringing the jobs back in the US? Discuss tax issues, international transactions, as well as non-financial issues...? (*please donot coppy past answer from other websites )
Explanation / Answer
When a company contracts to third party a specific process.It finds someone who has specialization in that field.
When businesses send in-house jobs overseas it is known as offshore.It is basically outsources to other countries or foreign subsidiaries.
Both save company money.
The pros of outsourcing are as follows-:
Revenues are realized better and investment returns are enhanced.
There is low labor cost and economics of scale realization are increased.
Cash flow reduces and resource allocation are optimized.
Its increases quality.
The cons of outsourcing
The cons of offshoring are
It provides jobs in different nations.
The business operations are improved.
Cost is cheaper
The cons of offshore
The offshore outsourcing decision is effected by taxation policy of india.We have to find out tax implications before outsourcing. It is important because different countries have different tax laws. If outsourcing company in india then provision of tax is made and made appropriate in the legal contract.
The effect of international issues on outsourcing and offshoring are when there is foreign rate fluctuations. There is hedge against fluctuations in foreign rates.There is no stability of money that how much we have to pay.It has major effect on non financial issues
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.