In the Learning Activity “The Economist: Report on Outsourcing and Offshoring,” Tamzin Booth comments that companies are rethinking their offshoring strategies. Briefly explain the differences between outsourcing and offshoring that are mentioned in this Topic, and list three reasons from the podcast as to why companies are rethinking their offshoring strategies. What automotive company is mentioned in the podcast that has turned to offshoring? Research this company and comment on what the status of offshoring is with this company today. What automotive company has followed in the footsteps of the company mentioned in the podcast? Do you support the strategies of these companies? Why or why not?
WHY OUTSOURCE AND OFFSHORE
The Economist: Report on Outsourcing and Offshoring
Introduction
The decision to outsource and offshore business has many considerations and far-reaching implications. Listen to this report on why companies may be rethinking decisions to outsource and offshore.The Economist: Here, There, and Everywhere
-Post adds value by raising novel points or providing new perspectives.
-Post is concise and clearly written in an academic tone; Sentences are complete; spelling, grammar and punctuation are correct.
Requirements: less than 3000 words
Answer preview
Many people do not know the difference between offshoring and outsourcing and use the two words interchangeably, but there is some overlap between the two terms. Outsourcing is defined as contracting out of the project as business functions or specific business activities to a third-party entity or external provider (The Economist, 2012). The term started to emerge in the 1980s when companies began to expand more and grow larger. More people started acquiring specialized skills, and companies developed the urge to get work done better and more efficiently by external companies specializing in specific business functions. More companies
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