Wikinomics: How Mass Collaboration Changes Everything is a book by Don Tapscott and Anthony D. Williams , first published in December 2006. It explores how some companies in the early 21st century have used mass collaboration and open-source technology, such as wikis , to be successful.
71-440: The term 'Wikinomics' describes the effects of extensive collaboration and user-participation and how relationships between businesses and markets have changed as a result. According to Tapscott, the use of mass collaboration in a business environment in recent history can be seen as an extension of the trend in business to outsource : externalize formerly internal business functions to other business entities. The difference however
142-619: A company business, although state governments may also employ offshoring. More recently, technical and administrative services have been offshored. Offshoring neither implies nor precludes involving a different company to be responsible for a business process. Therefore, offshoring should not be confused with outsourcing which does imply one company relying on another. In practice, the concepts can be intertwined, i.e offshore outsourcing , and can be individually or jointly, partially or completely reversed, as described by terms such as reshoring , inshoring , and insourcing . In-house offshoring
213-454: A business: A firm will tend to expand until the cost of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market. However, because of the changing usage patterns of Internet technologies, the cost of transactions has dropped so significantly that the authors assert that the market is better described by an inversion of Coase's Law. That is: A firm will tend to expand until
284-788: A call to action to "invest in America" at the White House "Insourcing American Jobs" Forum. Advances in 3D printing technologies brought manufacturers closer to their customers. There have been several very successful stories of companies. In most cases hundreds if not thousands of jobs were created or reinstated. In the case of Starbucks , in 2012 it saved American Mug and Stein Company in East Liverpool, Ohio from bankruptcy. Some cases of reshoring have not been successful. Otis Elevators' reshoring effort did not go well. Otis says it failed to consider
355-410: A company should only seek to subcontract in those areas in which it demonstrated no special ability. The business strategy outlined by his slogan recommended that companies should take advantage of a specialist provider's knowledge and economies of scale to improve performance and achieve the service needed. In 2009, by way of recognition, Peter Drucker posthumously received a significant honor when he
426-419: A different country from the one where the software will be used. The global software R&D services market, as contrasted to information technology outsourcing (ITO) and business process outsourcing (BPO), is rather young and currently is at a relatively early stage of development. Canada, India, Ireland , and Israel were the four leading countries as of 2003. Although many countries have participated in
497-479: A government outsourcing arrangement poses difficulties. There are many outsourcing models, with variations by country, year and industry. Japanese companies often outsource to China, particularly to formerly Japanese-occupied cities. German companies have outsourced to Eastern European countries with German-language affiliation, such as Poland and Romania . French companies outsource to North Africa for similar reasons. For Australian IT companies, Indonesia
568-446: A half page cartoon showing someone who had just ordered a pizza online, and was seeking help to download it. Step-in rights allow the client or a nominated third party the right to step-in and intervene, in particular to directly operate the outsourced services or to appoint a new operator. Circumstances where step-in rights may be contractually invoked may include supplier insolvency , a force majeure event which prevents or impedes
639-455: A job to be offshore-able are: Subcontracting in the same country would be outsourcing, but not offshoring. A company moving an internal business unit from one country to another would be offshoring or physical restructuring , but not outsourcing. A company subcontracting a business unit to a different company in another country would be both outsourcing and offshoring, offshore outsourcing . Types of offshore outsourcing include: Nearshoring
710-577: A major motivation for offshoring. Cost savings from economies of scale and specialization can also motivate outsourcing, even if not offshoring. Since about 2015 indirect revenue benefits have increasingly become additional motivators. Another motivation is speed to market. To make this work, a new process was developed: "outsource the outsourcing process". Details of managing DuPont 's chief information officer Cinda Hallman 's $ 4 billion 10-year outsourcing contract with Computer Sciences Corporation and Accenture were outsourced, thus avoiding "inventing
781-725: A major source for the advantages of a highly educated labor force, a large bilingual population, stable democratic government, and similar time zones as the U.S. It takes only a few hours to travel between Costa Rica and U.S. Companies such as Intel , Procter & Gamble , HP, Gensler , Amazon and Bank of America have big operations in Costa Rica. Unlike outsourced manufacturing, outsourced white collar workers have flextime and can choose their working hours, and for which companies to work. Clients benefit from remote work , reduced office space, management salary, and employee benefits as these individuals are independent contractors . Ending
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#1733086256274852-410: A million workers dedicated to producing a single kind of product. However, many companies are reluctant to move high value-added production of leading-edge products to China because of lax enforcement of intellectual property laws. Growth of offshoring has been linked to the availability of reliable and affordable communication infrastructure following the telecommunication and internet expansion of
923-481: A process if we'd done it in-house". A term subsequently developed to describe this is midsourcing . Outsourcing can offer greater budget flexibility and control by allowing organizations to pay for the services and business functions they need, when they need them. It is often perceived to reduce hiring and training specialized staff, to make available specialized expertise, and to decrease capital, operating expenses, and risk. "Do what you do best and outsource
994-430: A prominent destination for production offshoring. Another focus area has been the software industry as part of global software development and developing global information systems . After technical progress in telecommunications improved the possibilities of trade in services , India became one prominent destination for such offshoring, though many parts of the world are now emerging as offshore destinations. Since
1065-505: A result, concepts such as remote insourcing were created to give clients more control in managing their own projects. Nearshoring still has not overcome all barriers, but proximity allows more flexibility to align organizations. Production offshoring, also known as physical restructuring , of established products involves relocation of physical manufacturing processes overseas, usually to a lower-cost destination or one with fewer regulatory restrictions. Physical restructuring arrived when
1136-400: A serious concern for democratic governments and ordinary citizens who may be adversely affected by unregulated, offshore activities. Further, the rising costs of transportation could lead to production nearer the point of consumption becoming more economically viable, particularly as new technologies such as additive manufacturing mature. The World Bank 's 2019 World Development Report on
1207-464: A whole will obtain a net benefit from labor offshoring, but it is unclear if the displaced receive a net benefit. Some wages overseas are rising. A study by the U.S. Bureau of Labor Statistics found that Chinese wages were almost tripled in the seven years following 2002. Research suggests that these wage increases could redirect some offshoring elsewhere. Increased training and education has been advocated to offset trade-related displacements, but it
1278-494: Is a form of offshoring in which the other country is relatively close such as one sharing a border. Being nearby results in potentially beneficial commonalities such as temporal (time zone), cultural, social, linguistic, economic, political, or historical linkages. According to the 1913 New York Times article "Near Source of Supplies the Best Policy", the main focus was then on "cost of production." Although transportation cost
1349-560: Is annulled or suspended. If a contract has a clause granting step-in rights, then there is a right, though not an obligation, to take over a task that is not going well, or even the entire project. When and How are important: "What is the process for stepping-in" must be clearly defined in the collateral warranty . Offshoring Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Usually this refers to
1420-688: Is lower-cost skilled labor forces, and a less stringent regulatory environment, but crucially they allow for more day to day physical oversight. These countries also have strong cultural ties to the major economic centers in Europe as they are part of EU. For example, as of 2020 Portugal is considered to be the most trending outsourcing destination as big companies like Mercedes, Google, Jaguar, Sky News, Natixis and BNP Paribas opening development centers in Lisbon and Porto, where labor costs are lower, talent comes from excellent Universities, there's availability of skills and
1491-430: Is mainly due to flexibility when it comes to upscale or downscale teams or availability of low cost skilled developers. The nearshoring of call centers, shared services centers, and business process outsourcing (BPO) rose as offshore outsourcing was seen to be relatively less valuable. More recently, companies have explored nearshoring as a risk mitigation strategy for operational and supply chain weaknesses uncovered during
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#17330862562741562-485: Is no longer a comparative advantage of high-wage nations because education costs are lower in low-wage countries. In 2015, IT employment in the United States has recently reached pre-2001 levels and has been rising since. The number of jobs lost to offshoring is less than 1 percent of the total US labor market. The total number of jobs lost to offshoring, both manufacturing and technical represent only 4 percent of
1633-464: Is often enabled by the transfer of valuable information to the offshore site. Such information and training enables the remote workers to produce results of comparable value previously produced by internal employees. When such transfer includes protected materials, as confidential documents and trade secrets, protected by non-disclosure agreements , then intellectual property has been transferred or exported. The documentation and valuation of such exports
1704-427: Is one of the major choice of offshoring destination. Near-shore location, common time zone and adequate IT work force are the reasons for offshoring IT services to Indonesia. Another approach is to differentiate between tactical and strategic outsourcing models. Tactical models include: Strategic consultancy includes for business process improvement . When offshore outsourcing knowledge work, firms heavily rely on
1775-556: Is partially taken away by the progression of technology. Melanie Rojas et al in a 2022 Deloitte 's report commend adopting a combination of re-shoring and friendshoring - "working with other nations and trusted supply sources" - as a business practice and policy initiative aiming to promote supply chain resilience . After its accession to the World Trade Organization (WTO) in 2001, the People's Republic of China emerged as
1846-466: Is pure R&D or run-of-the-mill IT outsourcing. Focusing on software quality metrics is a good way to maintain track of how well a project is performing. Globalization and complex supply chains , along with greater physical distance between higher management and the production-floor employees often requires a change in management methodologies, as inspection and feedback may not be as direct and frequent as in internal processes. This often requires
1917-440: Is quite difficult, but should be considered since it comprises items that may be regulated or taxable. Offshoring to foreign subsidiaries has been a controversial issue spurring heated debates among economists. Jobs go to the destination country and lower cost of goods and services to the origin country. On the other hand, job losses and wage erosion in developed countries have sparked opposition. Free trade with low-wage countries
1988-436: Is relocating a business process to another country but does not imply or preclude another company. In practice, the concepts can be intertwined, i.e. offshore outsourcing , and can be individually or jointly, partially or completely reversed, as described by terms such as reshoring , inshoring , and insourcing . Global labor arbitrage can provide major financial savings from lower international labor rates, which could be
2059-493: Is that instead of an organized business body brought into being specifically for a unique function, mass collaboration relies on free individual agents to come together and cooperate to improve a given operation or solve a problem. This kind of outsourcing is also referred to as crowdsourcing , to reflect this difference. This can be incentivized by a reward system, though it is not required. The book also discusses seven new models of mass collaboration, including: The last chapter
2130-406: Is when on-site hardware interacts with outside identity services. This contrasts with an "all in-the-cloud" service scenario, where the identity service is built, hosted and operated by the service provider in an externally hosted, cloud computing infrastructure. Offshore software R&D is the provision of software development services by a supplier (whether external or internal) located in
2201-527: Is when the offshored work is done by means of an internal (captive) delivery model. Imported services from subsidiaries or other closely related suppliers are included, whereas intermediate goods, such as partially completed cars or computers, may not be. Lower cost and increased profitability are often the motivation for offshoring. Economists call this labor arbitrage . More recently, offshoring incentives also include access to qualified personnel abroad, in particular in technical professions, and decreasing
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2272-482: Is win-lose for many employees who find their jobs offshored or with stagnating wages. Currency manipulation by governments and their central banks cause differences in labor cost. On May 1, 2002, Economist and former Ambassador Ernest H. Preeg testified before the Senate committee on Banking, Housing, and Urban Affairs that China, for instance, pegs its currency to the dollar at a sub-par value in violation of Article IV of
2343-414: Is written by viewers, and was opened for editing on February 5, 2007. According to Tapscott and Williams, these four principles are the central concepts of wikinomics in the enterprise: In the chapter The Perfect Storm , the authors give an overview of the economic effects of the kind of transactions Web 2.0 permits. According to the authors, Coase's Law (see Ronald Coase ) governs the expansion of
2414-539: The 2016 U.S. presidential election "the most disruptive change agent for the outsourcing industry", especially the renewed "invest in America" goal highlighted in campaigning, but the magazine tepidly reversed direction in 2019 as to the outcome for employment. In the case of armament acquisition, section 323 of the National Defense Authorization Act for 2014 requires military personnel "to solicit information from all U.S.-owned arsenals regarding
2485-569: The International Monetary Fund Articles of Agreement which state that no nation shall manipulate its currency to gain a market advantage. The opposing sides regarding offshoring, outsourcing, and offshore outsourcing are those seeking government intervention and Protectionism versus the side advocating Free Trade . Jobs formerly held by U.S. workers have been lost, even as underdeveloped countries such as Brazil and Turkey flourish. Free-trade advocates suggest economies as
2556-625: The North American Free Trade Agreement (NAFTA) made it easier for manufacturers to shift production facilities from the US to Mexico . This trend later shifted to China, which offered cheap prices through very low wage rates, few workers' rights laws, a fixed currency pegged to the US dollar, (currently fixed to a basket of economies) cheap loans, cheap land, and factories for new companies, few environmental regulations, and huge economies of scale based on cities with populations over
2627-468: The 1980s American companies have been "offshoring" and outsourcing manufacturing to low cost countries such as India , China , Malaysia , Pakistan and Vietnam . President Obama's 2011 SelectUSA program was the first federal program to promote and facilitate U.S. investment in partnership with the states. This program and website helps companies connect with resources available on a Federal, State and local level. In January 2012, President Obama issued
2698-600: The COVID-19 global pandemic crisis, when offshore BPOs experienced sudden closures and disruptive quarantine restrictions which hampered their ability to conduct day-to-day business operations. The complexities of offshoring stem from language and cultural differences, travel distances, workday/time zone mismatches, and greater effort for needed for establishing trust and long-term relationships. Many nearshore providers attempted to circumvent communication and project management barriers by developing new ways to align organizations. As
2769-566: The International Association of Outsourcing Professionals gave recognition to Electronic Data Systems Corporation's Morton H. Meyerson who, in 1967, proposed the business model that eventually became known as outsourcing. The growth of offshoring of IT-enabled services, although not universally accepted, both to subsidiaries and to outside companies (offshore outsourcing) is linked to the availability of large amounts of reliable and affordable communication infrastructure following
2840-564: The U.S. in 2007, which could exceed 400 times more than average workers—a gap 20 times bigger than it was in 1965, is not a factor. Other reasons include reducing and controlling operating costs, improving company focus, gaining access to world-class capabilities, tax credits, freeing internal resources for other purposes, streamlining or increasing efficiency for time-consuming functions, and maximizing use of external resources. For small businesses, contracting/subcontracting/"outsourcing" might be done to improve work-life balance . Following
2911-412: The adding of management layers in the 1950s and 1960s to support expansion for the sake of economy of scale, corporations found that agility and added profits could be obtained by focusing on core strengths; the 1970s and 1980s were the beginnings of what later was named outsourcing. Kodak 's 1989 "outsourcing most of its information technology systems" was followed by others during the 1990s. In 2013,
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2982-463: The area of call-center outsourcing, especially when combined with offshoring, agents may speak with different linguistic features such as accents , word use and phraseology, which may impede comprehension. In 1979, Nobel laureate Oliver E. Williamson wrote that the governance structure is the "framework within which the integrity of a transaction is decided", and that "because contracts are varied and complex, governance structures vary with
3053-416: The assimilation of new communication methods such as voice over IP , instant messaging , and issue tracking systems , new time management methods such as time tracking software , and new cost- and schedule-assessment tools such as cost estimation software . The term "transition methodology" describes the process of migrating knowledge, systems, and operating capabilities between the two sides. In
3124-655: The availability of technical personnel at offshore locations. One of the challenges in offshoring engineering innovation is a reduction in quality. Co-sourcing is a hybrid of internal staff supplemented by an external service provider. Co-sourcing can minimize sourcing risks, increase transparency, clarity and lend toward better control than fully outsourced. Co-sourcing services can supplement internal audit staff with specialized skills such as information risk management or integrity services, or help during peak periods, or similarly for other areas such as software development or human resources. Identity management co-sourcing
3195-521: The bank. Richard Baldwin 's 2006 The Great Unbundling work was followed in 2012 by Globalization's Second Acceleration (the Second Unbundling) and in 2016 by The Great Convergence: Information Technology and the New Globalization . It is here, rather than in manufacturing, that the bits economy can advance in ways that the economy of atoms and things cannot: an early 1990s Newsweek ran
3266-584: The book's prose can fall into breathless hype." A review of this book in Choice recommends the book for "general readers and practitioners," but cautions that the authors "present an optimistic overview of successful collaborations and business ventures", "use unique terms (e.g., marketocracy , prosumption, knowledge commons )", should have given "more consideration [to] the darker sides of human motivation as well as groupthink and mass mediocrity", and "primarily draw on their own observations of businesses and trends for
3337-559: The capability of that arsenal to fulfill the manufacturing requirement" when undertaking a make-or-buy analysis. Furthermore, there are growing legal requirements for data protection , where obligations and implementation details must be understood by both sides. This includes dealing with customer rights. UK government policy notes that certain services must remain in-house, citing the development of policy , stewardship of tax spend and retention of certain critical knowledge as examples. Guidance states that specific criteria must govern
3408-690: The community. To help with these projects, companies often turn to consultants that specialize in reshoring. In the United Kingdom , companies have used the reintroduction of domestic call centres as a unique selling point . In 2014, the RSA Insurance Group completed a move of call centres back to Britain. The call centre industry in India has been hit by reshoring, as businesses including British Telecom , Santander UK and Aviva all announced they would move operations back to Britain in order to boost
3479-651: The consequences of the new location and tried to do too much at once, including a supply-chain software implementation. This is not an uncommon reshoring scenario. Bringing manufacturing back to the United States isn't so simple, and there are a lot of considerations and analyses that companies must do to determine the costs and feasibility of reshoring. Some companies pursue reshoring with their own internal staff. But reshoring projects are complicated and involve engineering, marketing, production, finance, and procurement. In addition, there are real estate concerns, government incentives and training requirements that require outreach to
3550-508: The contract between the client and the suppliers, fraud cases have been reported. In April 2005, a high-profile case involved the theft of $ 350,000 from four Citibank customers when call-center workers acquired the passwords to customer accounts and transferred the money to their own accounts opened under fictitious names. Citibank did not find out about the problem until the American customers noticed discrepancies with their accounts and notified
3621-528: The contracting out of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management , call center /call center support. The practice of handing over control of public services to private enterprises ( privatization ), even if conducted on a limited, short-term basis, may also be described as outsourcing. Outsourcing includes both foreign and domestic contracting, and therefore should not be confused with offshoring which
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#17330862562743692-517: The cost of carrying out an extra transaction on the open market become equal to the costs of organizing the same transaction within the firm. Thus, the authors think that with the costs of communicating dramatically dropping, firms who do not change their current structures will perish. Companies who utilize mass collaboration will dominate their respective markets. A review of this book in the Harvard Business Review states "like its title,
3763-568: The country that offshored the work. With nearshore outsourcing, the work is done by an outside company rather than internally, but in contrast to typical offshore outsourcing, the work is done in fairly close proximity to the company headquarters and its target market. Nearshoring is often used for information technology (IT) processes such as application development, maintenance and testing. In Europe, nearshore outsourcing relationships are between clients in larger European economies and various providers in smaller European nations. The attraction
3834-452: The early 21st century. The digital workforce of countries like India and China are only paid a fraction of what would be minimum wage in the United States. On average, software engineers are getting paid between 250,000 and 1,500,000 rupees (US$ 4,000 to US$ 23,000) in India as opposed to $ 40,000–$ 100,000 in countries such as the U.S. and Canada . Closer to the U.S., Costa Rica has become
3905-675: The economy and regain customer satisfaction. Product design, research and the development (R&D) process is relatively difficult to offshore because R&D, to improve products and create new reference designs, requires a higher skill set not associated with cheap labor. There is a relationship between offshoring and patent-system strength. Companies under a strong patent system are not afraid to move work offshore because their work will remain their property. Conversely, companies in countries with weak patent systems have an increased fear of intellectual property theft from foreign vendors or workers, and, therefore, have less offshoring. Offshoring
3976-758: The effect of what looks like outsourcing from one side and insourcing from the other side can be unexpected; The New York Times reported in 2001 that "6.4 million Americans .. worked for foreign companies as of 2001, [but] more jobs are being outsourced than" [the reverse]. While U.S. companies do not outsource to reduce high top level executive or managerial costs, they primarily outsource to reduce peripheral and "non-core" business expenses. Further reasons are higher taxes, high energy costs, and excessive government regulation or mandates. Mandated benefits like social security , Medicare , and safety protection (e.g. Occupational Safety and Health Administration regulations) are also motivators. By contrast, executive pay in
4047-437: The future of work considers the potential for automation to drive companies to reshore production, reducing the role of labor in the process, and offers suggestions as to how governments can respond. A similar movement can be seen related to Robotic Process Automation , called RPA or RPAAI for self-guided RPA 2.0 based on artificial intelligence , where the incentive to move repetitive shared services work to lower cost countries
4118-534: The ideas presented". Tapscott and Williams released a followup to Wikinomics, titled Macrowikinomics: Rebooting Business and the World , on September 28, 2010. Outsourcing Outsourcing is a business practice in which companies use external providers to carry out business processes , that would otherwise be handled internally. Outsourcing sometimes involves transferring employees and assets from one firm to another. The term outsourcing , which came from
4189-573: The identification of such services, and that "everything else" could potentially be outsourced. Inflation, high domestic interest rates, and economic growth pushed India's IT salaries 10–15%, making some jobs relatively "too" expensive, compared to other offshoring destinations. Areas for advancing within the value chain included research and development, equity analysis, tax-return processing, radiological analysis, and medical transcription . Although offshoring initially focused on manufacturing, white-collar offshoring/outsourcing has grown rapidly since
4260-432: The language used in that culture. Constraints imposed by time zones can complicate communication; near-sourcing or nearshoring offers a solution. English language skills are the cornerstone of Nearshore and IT services. Collaboration by universities, industry, and government has slowly produced improvements. Proximity also facilitates in-person interaction regularly and/or when required. Software development nearshoring
4331-523: The late 1990s. Much of the job movement was to outside companies, offshore outsourcing . Reshoring , also known as onshoring , backshoring or inshoring , is the act of reversing an offshoring change; moving a business process that was offshored, back to the original country. John Urry, professor of sociology at Lancaster University , argues that the concealment of income, the avoidance of taxation and eluding legislation relating to work, finance, pleasure, waste, energy and security may be becoming
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#17330862562744402-618: The nature of the transaction". University of Tennessee researchers have been studying complex outsourcing relationships since 2003. Emerging thinking regarding strategic outsourcing is focusing on creating a contract structure in which the parties have a vested interest in managing what are often highly complex business arrangements in a more collaborative, aligned, flexible, and credible way. Reduced security, sometimes related to lower loyalty may occur, even when 'outsourced' staff change their legal status but not their desk. While security and compliance issues are supposed to be addressed through
4473-471: The offshore outsourcing of software development, their involvement in co-sourced and outsourced Research & Development (R&D) was somewhat limited. Canada, the second largest by 2009, had 21%. As of 2018, the top three were deemed by one "research-based policy analysis and commentary from leading economists" as China, India and Israel." Gartner Group adds in Russia , but does not make clear whether this
4544-403: The outsourced service provision, where the client believes that there is a substantial risk to the provision of the services, or where performance fails to meet a defined critical level of service. Suitable clauses in a contract may provide for the outsourced service provider to pay any additional costs which are faced by the client and specify that the provider's obligation to provide the services
4615-470: The phrase outside resourcing , originated no later than 1981 at a time when industrial jobs in the United States were being moved overseas, contributing to the economic and cultural collapse of small, industrial towns. In some contexts, the term smartsourcing is also used. The concept, which The Economist says has "made its presence felt since the time of the Second World War ", often involves
4686-459: The rest" has become an internationally recognized business tagline first "coined and developed" in the 1990s by management consultant Peter Drucker . The slogan was primarily used to advocate outsourcing as a viable business strategy. Drucker began explaining the concept of "outsourcing" as early as 1989 in his Wall Street Journal article entitled "Sell the Mailroom". From Drucker's perspective,
4757-472: The telecommunication and Internet expansion of the late 1990s. Services making use of low-cost countries included: In the early 21st century, businesses increasingly outsourced to suppliers outside their own country, sometimes referred to as offshoring or offshore outsourcing . Other options subsequently emerged including: nearshoring, crowdsourcing , multisourcing , strategic alliances / strategic partnerships , strategic outsourcing. Forbes considered
4828-470: The time to market. Jobs are added in the destination country providing the goods or services and are subtracted from the higher-cost labor country. The increased safety net costs of the unemployed may be absorbed by the government (taxpayers) in the high-cost country or by the company doing the offshoring. Europe experienced less offshoring than the United States due to policies that applied more costs to corporations and cultural barriers. Some criteria for
4899-453: The time zone is GMT (the same as London). US clients nearshore to countries such as Canada, Mexico and nations in Central and South America. Cultural alignment with the business is often more readily achieved through near-sourcing due to there being similarities between the cultures in which the business is located and in which services are sub-contracted, including for example proficiency with
4970-451: Was addressed, they did not choose among: The term nearshoring derives from offshoring . When combined with outsourcing, nearshore outsourcing , the nearshore workers are not employees of the company for which the work is performed. Nearshoring can involve business strategy to locate operations close to where product is sold. This is contrasted with using low-wage manufacturing operations in developing nations and shipping product back to
5041-495: Was inducted into the Outsourcing Hall of Fame for his outstanding work in the field. The biggest difference between outsourcing and in-house provision is with regards to the difference in ownership: outsourcing usually presupposes the integration of business processes under a different ownership, over which the client business has minimal or no control. This requires the use of outsourcing relationship management . Sometimes
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