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Assignment Eight

1948 words - 8 pages

Introduction
The main objective of most organizations is to be profitable. Their profit is the differentiation amid the expense of offering goods or services and the real expenditure to the consumer. As additional businesses, endeavor into the same enterprise, the battle for consumers gets passionate, consequently setting into motion the law of supply and demand. Saturation of a good or service propels the cost customers must pay. These forces have impelled business strategists to seek modern techniques to augment earnings while diminishing the expense of offerings. Leveraging information technology (IT), has been a tactic to preserve a competitive advantage for several of the largest ...view middle of the document...

Destinations
A review of the most effective measure (offshoring, offshore outsourcing, nearshoring, and co-shoring.) to reduce costs associated with information security risks
Outsourcing has developed into a key movement for human resources (HR) over the past decade. Outsourcing is the method of sending specific job functions outside an organization as an alternative to conducting them in-house. Progressively more organizations, large and small, are turning to outsourcing as a strategy to flourish while curbing workforce and overhead expenditures. Several forms of outsourcing exist, such as offshoring, offshore outsourcing, nearshoring, and coshoring.
Offshoring has emerged as a considerable power in the global political market, a critical source of firm-specific competitive advantage, and a crucial point for debates over the benefits and expenses of globalization (Hahn, Doh, & Bunyaratavej, 2009). Offshoring is the relocation of a segment of an organization to an alternative nation or geographic locale. The compelling motivation for businesses is to benefit from the diminished cost of labor or accessible technology in the offshore locale. Executives are continuously pursuing techniques to augment earnings by reducing the costs of their goods and services to remain competitive. These techniques may not only reduce costs, but it may permit the business to offer superior goods and services in consequence of the outsourced part being managed by a specialized entity. Offshoring does not always denote outsourcing labor to another organization; it may signify moving a section of the business to another country. Some factors triggering offshoring include (a) scarce human expertise; (b) increased demand; (c) available global talents; (d) routine tasks; (e) changing goals and objectives; (f) innovation; and (g) limitation (King & Torkzadeh, 2008). Some Risks to offshore include (a) decline in morale; (b) loss of innovation; (c) host country instability; (d) quality control and standards; (e) communications and culture; (f) cost-reduction expectations; (g) data security/protection; (h) loss of business knowledge; (i) government oversight/regulation; and (j) turnover of key personnel (Davison, 2008). Offshoring and the discussions over its ROI to our national economic growth, competitiveness, and security are sensitive issues since unemployment is extremely elevated in the states. Transferring jobs outside a country diminishes the quantity of obtainable jobs domestically, therefore, affecting unemployment. Issues can result from the long distance between the organization and its offshore colleagues. Further expenditures may be encountered due to travel requirements to offshore locale hence increasing operating expenses and ultimately diminishing profitability of the organization. The command an organization employs over its offshore division is inversely proportionate to the distance between the organization and the offshore locale...

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