Order Instructions:
Outsourcing
While the general readings for Module 3 are about International HRM, in the case for module 3 we are going to
focus on outsourcing, a major phenomenon of international business that affects employment in a very significant
way.
Outsourcing means that companies contract out activities previously performed in-house. We focus on international
outsourcing. Companies are increasingly contracting out various functions in order to take advantage of lower
labor costs in other countries.
Outsourcing started with manufacturing. Nowadays, IT is being increasingly outsourced to Asian countries,
especially India and China. The movie industry has increasingly used outsourcing, by finding less and less
expensive movie locations! Companies have also moved “call centers” to other countries, as well as other service-
related functions.
Outsourcing is a controversial phenomenon. Companies perceive it as a cost-cutting strategy that enhances
shareholder wealth. Opponents examine number of jobs lost in the United States. There is also concern about
outsourcing strategic functions, such as IT.
Case Assignment Expectations
Write a 2-3 page paper and post about outsourcing from the perspective of a multinational firm (Yes, this may be a
hypothetical firm), and be sure to answer the following questions:
1. What are the advantages of outsourcing?
2. What are the disadvantages of outsourcing?
Discuss why these are advantages and disadvantages and to whom.
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