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outsourcing of U.S. domestic jobs to foreign countries

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One of the most controversial topics in the area of sourcing is outsourcing of U.S. domestic jobs to areas with cheaper labor rates, such as India and other areas in Asia. Using course materials and other resources, do the following:

1) Detail the reasons why companies are moving labor to offshore locations.

2) Is there an ethical bias with this trend? Do you believe transferring domestic labor to a foreign workforce has ethical issues? If so, what are they?

3) Identify the advantages and disadvantages of this outsourcing trend.

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Outsourcing of U.S. domestic jobs to foreign countries

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1) The primary reason for companies moving their labor to offshore locations is to obtain comparative and strategic advantage offered by offshore locations in production of goods/services, especially in terms of costs and quality as well as availability of abundant and qualified work force. As competition between global companies is becoming intense and everyone is trying to capture more and more market share by offering superior products at lower costs, companies are setting up offshore operations in countries like India and China which not only offer abundant and qualified workforce, but also offer ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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