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IT Outsourcing

This document explores the concept of outsourcing, particularly in IT, manufacturing, software testing, and business processes. It outlines common operations that organizations choose to outsource and highlights the top countries and companies leading in offshore outsourcing, including India, China, and more. Additionally, it introduces a game to facilitate discussion on strategic decision-making related to outsourcing, prompting teams to evaluate the pros and cons of various decisions, including establishing partnerships or captive offices. Participants will engage by providing valid arguments, with incentives offered for team contributions.

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IT Outsourcing

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  1. IT Outsourcing Brian Emily Richard (B.E.R.)

  2. Introduction • What is outsourcing? • A delegation of non-core operations from internal production to an external entity. • What operations are commonly outsourced? • IT, Manufacturing, Software Testing, Business Process Outsourcing (BPO), Software Development, Data Analysis, Call Centers, Graphic Arts, Accounting, Payroll, Etc.

  3. Top 10 Countries/Companies For offshore outsourcing • India: HP, • China: IBM • Malaysia: Motorola, IBM • Czech Republic: IBM, Sun, Dell • Singapore: HP, • Philippines: Time Warner, Proctor and Gamble, Chevron • Brazil: Ford • Canada: GM • Chile: Citigroup • Poland: IBM, GE, Motorola

  4. The Game • Split into three teams, based on whether you are for, against, or neutral. • Teams are scored as a whole, and each team must answer each question. • Points are given for valid arguments. • Candy will be rewarded.

  5. Questions: • What problems do you see with Xin’s decision making process? • What additional things should he consider before outsourcing to China? • Would you chose the “captive” office, or would you partner with a Chinese firm? Why? • Would you outsource to India or China? Why? • The last paragraph talks about Xin’s employees being on site with their clients, will this still be reasonable with his operations based in China?

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