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Thread: Outsourcing Failures Internationally

  1. #11
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    Default Re: Outsourcing Failures Internationally

    I dont know if there have been many failures in the outsourcing jobs to foreign countries regime. The problem would probably arise from misappropriation of resources than anything else. The reason for most of these outsourcing activities are the advantages, from tax breaks, concessions and low wages. Whaterver reduction in revenue would mostly be derived from lower demand which would be the same as it was in the home country. These companies are always looking to exploit better advantages, hence, the frequent shif from country to country.

  2. #12
    Diamond Member Corzhens's Avatar
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    Default Re: Outsourcing Failures Internationally

    Quote Originally Posted by Norm View Post
    I have heard some stories where the product concepts got stolen and sold for cheaper so the ones who outsourced essentially just created their own competition, though to be fair there is no telling that this would not have happened anyway even if they didn't outsource since the product isn't that complex anyway, or to be more precise it can also be argued that it may not be a problem with outsourcing itself but maybe just the company that they ultimately chose to use.
    This is very possible to happen and I guess there are cases like that particularly in the 3rd world countries. The rule of the mother companies in outsourcing is to outsource only the workers in the lower level of hierarchy so they can still have full control of their business. Like the company of Coke, they are very careful with the formula for there were countless of attempts of stealing the well-guarded formula because for sure that formula will be bought by the competition at a high price.

  3. #13
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    Default Re: Outsourcing Failures Internationally

    Quote Originally Posted by Corzhens View Post
    This is very possible to happen and I guess there are cases like that particularly in the 3rd world countries. The rule of the mother companies in outsourcing is to outsource only the workers in the lower level of hierarchy so they can still have full control of their business. Like the company of Coke, they are very careful with the formula for there were countless of attempts of stealing the well-guarded formula because for sure that formula will be bought by the competition at a high price.
    I heard that once an employee of coca cola went to Pepsi trying to sell them the secret formula and the employee was reported to the head of coke by the head of Pepsi. It gave me great pleasure and hope knowing that happened because stories like that make me feel like there is a chance for everyone to stay civilized while still being in competition and that we don't have to turn ourselves into criminals just to get ahead.

  4. #14
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    Default Re: Outsourcing Failures Internationally

    I know of one outsourcing that failed. The company wrote secure code for a very secure product, I'm not saying what as it would be identifiable. As a result the coders were well paid. A new manager decided that to save money, they would simply outsource the coding overseas and let the coders go, because coders were inmterchangeable...

    Except that the code that came back did not match the international standards that were needed for the product, and the company quickly discovered that training the coders at the outsourced company up would be several times more expensive than running their own department had been, since the coders at the outsource company kept taking the training and going elsewhere for more money. They ended up effectively rehiring their coders to check and correct the code coming in from the outsourcers until the contract ran out. It cost them a substantial amount of money because they didn't check exactly what they were outsourcing.

  5. #15
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    Default Re: Outsourcing Failures Internationally

    When it comes to outsourcing internationally, many failures may present themselves. Cultural and language lack of communication is, perhaps, one of the biggest here. Not being able to reprimand poor performance, or not being present to do so, is also another major sub-problem presented here. There are many others out there....

  6. #16
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    Default Re: Outsourcing Failures Internationally

    Outsourcing is, along with other instruments quite in vogue, a possibility, within the scope of the law, to reduce the participation of the State in improper tasks. The limits for the public service instrument, in line with a current policy that is being implemented for the current government and whose roots in positive law, will soon reach 30 years of existence and, regrettably, of incomprehension and non-compliance in Brazil. There are highways with outsourcing services where they cash in high taxes for any person who use it.

  7. #17
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    Default Re: Outsourcing Failures Internationally

    With India becoming a major outsourcing hub, accounting work outsourcing is fast becoming popular and gaining momentum. Accounting work outsourcing is being opted for by many organizations these days. Outsourcing invoice processing is also in trend as business firms want to eliminate the risk that incorrect invoices pose to the future of the company. http://www.infoxusa.com/back-office/accounting-services

  8. #18
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    Default Re: Outsourcing Failures Internationally

    While India becoming a major outsourcing hub, accounting work outsourcing is becoming popular and gaining momentum. Accounting work outsourcing is being opted by many organizations these days. Outsourcing invoice processing is also in trend in business firms want to eliminate the risk that incorrect invoices pose to the future of company. There are least chances of failures, get here detailed information : http://www.infoxusa.com/back-office/accounting-services

  9. #19
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    Default Re: Outsourcing Failures Internationally

    The risk of outsourcing can be reduced by reviewing the past performance or results of the contractor. The key in achieving outsourcing effectiveness is to ensure that we outsource activities/jobs/areas to competent contractors, where these are activities are not our core competences. And we should always measure contractors performances based on our end desired results (i.e. Cost per ton, cost per metre and etc). I have done many outsourcing activities in the area of supply chain, and I have always kept a backup plan in the event that the initial outsourcing contractor fails to deliver the desired results.

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