Offshoring And Outsourcing Essay Example | Topics and Well Written Essays - 250 words

Offshoring And Outsourcing - Essay Example Once the operation is outsourced to a given service provider, they will take the responsibility of conducting the operation and maintaining the management assets.When a company offshores, it just shifts the location of production or a service abroad. Examples of such are companies who outsource to foreign companies - for instance, Wal-Mart offshores production lines of a certain part of Chinese firms. Likewise, offshoring also refers companies who transfer specific lines of products or services to a location abroad without outsourcing the job. When a company offshores, it just shifts the location of production or a service abroad. Examples of such are companies who outsource to foreign companies - for instance, Wal-Mart offshores production lines of a certain part of Chinese firms. Likewise, offshoring also refers companies who transfer specific lines of products or services to a location abroad without outsourcing the job. Most of the times a company may never handle all aspects of organization's process internally or times they lack capacities to do so thus the need to outsource. Moreover, some processes are temporary, and the company may not intend to hire in-house experts to perform the tasks. These are some of the considerations including concerns for the economic accusation of labor and cost of production generally. For instance, instead of Wal-Mart paying more to acquire labor and raw material in a Specific line of production, they would rather outsource in China and in the long run obtain more gains.