Some business and political leaders argue that offshoring is dangerous because i

Question

Some business and political leaders argue that offshoring is dangerous because it can move jobs from developed countries to less developed countries. Others argue that although offshoring might displace workers in the short run, in the longer tern, everyone benefits by having developing economies create new industries, products, and markets for products and services provided by companies in the developed world. Present arguments for and against US companies offshoring the maintenance of its customer database (error checking, removing duplicate entries, and so on).

Explanation / Answer

There exist two types of operations in businesses, core operations and support services. Core operations refers to works that add value to the system and support functions refers to work that is of non-value added nature.

Maintenance, error checking, removing duplicate entries etc falls under tgis category. The support operations or activities are necessary for smoith operations but add cost to thw final product. American companies are offshoring support services to other low cost countries to lower the cost of product and services. These companies might be offshoring their support services but always keep core capabilities to them selves. The ultimate beneficiary is the american people who are getting services at low cost.

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