Term
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Definition
1. hiring less-expensive human resources overseas
2. an arrangement in which work is done by people from outside your company, usually by a company that is expert in that type of work |
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Term
| what makes a job susceptible to being sent off shore |
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Definition
1. no face to face time is required
2. high information content
3. process that is internet enabled
4. low setup barriers |
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Term
| about how much of the work force is considered offshorable? |
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Definition
| 50 jobs that make up 15 million jobs or 11% of our 2001 workforce |
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Term
| what has happened to the indian IT ITES industry since 2000? |
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Definition
| the indian IT industry has grown over 28% |
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Term
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Definition
saves costs, gain expertise you dont have, free up management time, refocus on core competencies
ex- UT outsourced email to Gmail |
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Term
| why do companies utalize international outsourcing |
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Definition
| large companies outsource outside US because of large, well educated, english speaking population that works for 20-30% of the cost. also allows for 24/7 customer service |
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Term
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Definition
| outsourcing is not offshoring |
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Term
| outsourcing can can be on a scale where the y axis is ______ and the location is _____ |
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Definition
| outsourcing can be scaled on a scale where inside/outside the firm is on the y axis and local/remote is on the x axis |
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Term
| what are enabling factores of outsourcing? |
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Definition
liberation of global economies
digitization of business processes
proliferation of computing and telecom
education outside of US, europe and japan
propagation of worldwide business culture |
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Term
| In the mid 2000's, there were about _____ location choices and today there are over _____ locations |
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Definition
| in the mid 2000s there were about 20 choice cities and today there are over 125 |
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Term
| what are the seven well established trends? |
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Definition
1. global sourcing will continue to grow
2. the key word will be 'global'
3. sourcing will move 'up the food chain'
4.talent will be more important that cost
5.scale will decline dramatically
6.sourcing will become more personal
7.more two way travel |
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Term
| what is the sourcing decision of in or out based on? |
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Definition
core competency makes you ask, what makes me truly unique?
where do you fall on the graph of current/source of competence (Y) vs. future core competence |
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Term
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Definition
1. loss of control
2. benefits outweighed by longterm costs
3. no easy exit |
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Term
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Definition
| total costs = production costs + transaction costs |
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Term
| whats the relationship between production costs and transiction costs in regards to outsourcing/offshore? |
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Definition
| as production costs drop due to outsourcing/offshore, transaction costs are increasing |
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Term
| alternatives to outsourcing |
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Definition
1. outsource aquisition and operation of computer hardware
2. acquiring licensed software
3. outsource entire system
4. web storefront
5. entire business function
6. "HOUSE" sourcing |
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Term
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Definition
outsourcing at home in US aka ONshoring
ex- cayuse technologies: indian tribe in Oregon. employment increased on reservatoin, partnered with accenture, demploys and trains local in a cutting edge skills |
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Term
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Definition
| cost of living in small/midsized areas is much lower, its cheaper to have high tech industries here than in popular centers such as silicon valley |
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Term
| how do you avoid your job being offshored |
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Definition
have a non-rutin, complex, high value-added knowledge work
strong interpersonal and communication skills
ability to coordinate and work on a global scale
cultural mindfulness |
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Term
| what kind of jobs are safer from off shoring? |
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Definition
jobs that demand a physical presence, deep relationships with customers and extensive knowledge of local market conditions.
multidisciplinary skills that aren't common in low cost countries |
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