Outsourcing

Assignment #1 Feedback...

Good job everybody. However, Annie did not participate, which will affect her individual grade (zero) and your team's grade (85) for this assignment as well. Other than that, you will all receive full credit for your individual participation. 

Keep it up!

Outsourcing - Ana Cristina

China announces new measures to boost service outsourcing

BEIJING, Feb. 2 (Xinhua) -- The Chinese government announced on Monday it will give tax breaks and subsidies to encourage the growth of service outsourcing nationwide. The details to boost the development of service outsourcing were outlined in a document drafted by the Ministry of Commerce (MOC) and approved by the State Council, China's Cabinet.

Service outsourcing allows companies to transfer service operations to professional providers so that they can focus on their core business. A service outsourcing company helps its clients manage business operations, such as information technology, training, logistics and advertising.

The document said that 20 cities, including Beijing, Shanghai, Xi'an, Suzhou and Hangzhou, have been designated for pilot service outsourcing programs. Beginning Jan. 1, these companies are eligible for tax breaks, financial support, subsidies and intellectual property rights protection.

Technology-advanced service outsourcing companies are allowed to adopt flexible working hours for workers if they get approval from local human resources departments, said the document.

Technology development companies on the national level that are based in central and western China are expected to enjoy favorable tax policies when they apply for loans to launch service outsourcing projects.

The government also encourages telecom providers to help pave the way for enterprises to take the advantage of the outsourcing pilot to more easily communicate with the outsourcing service provider.

China also plans to establish and improve an outsourcing supervision mechanism, introduce new insurance products and establish a network of trained outsourcing personnel.

The government will offer service outsourcing companies a subsidy of up to 4,500 yuan (662 U.S. dollars) a year for every college graduate employed on a contract of at least one year.

The document cited Suzhou Industrial Park as an example, saying service companies there would enjoy an enterprise income tax rate of 15 percent, compared with 25 percent elsewhere in the country, until 2013.

Chinese Vice Premier Wang Qishan hosted a meeting in Nanjing, capital of Jiangsu Province, to discuss experiment of service outsourcing.

At the meeting, MOC Vice Minister Ma Xiuhong estimated that international service outsourcing volume would top 600 billion U.S. dollars by 2010.

"More foreign companies outsource parts of their business to overseas companies to reduce operation costs, which provide Chinese enterprises with lots of opportunities," Ma said.

According to the MOC, the country hopes to train 1.2 million service outsourcing professionals by 2013. During the same period, 1 million college graduates are expected to find new jobs in this sector.

However, world consultant firm Mckinsey & Comapany said in a report that China's outsourcing business growth still lags behind its neighbor, India.

Its statistics show India's service outsourcing volume was 42.2billion U.S. dollars in 2008, nine times China's. More than 2 million Indian people worked in the outsourcing sector, four times more than China's figures.

The McKinsey & Comapany report also forecasted that despite various difficulties, China still has great potential to develop outsourcing businesses. The country is expected to become the most important service outsourcing destination worldwide in the future.

Up to 2008, 3,300 Chinese companies provided service outsourcing business to overseas companies, with a contract volume of 4.69 billion U.S. dollars, official statistics show.

Editor: Yao

Source:

http://news.xinhuanet.com/english/2009-02/02/content_10752148.htm

Outsourcing

Anna Criss
China annoAunces new measures to boost service outsourcing
BEIJING, Feb. 2 (Xinhua) -- The Chinese government announced on Monday it will give tax breaks and subsidies to encourage the growth of service outsourcing nationwide.
The details to boost the development of service outsourcing were outlined in a document drafted by the Ministry of Commerce (MOC) and approved by the State Council, China's Cabinet.
Service outsourcing allows companies to transfer service operations to professional providers so that they can focus on their core business. A service outsourcing company helps its clients manage business operations, such as information technology, training, logistics and advertising.
The document said that 20 cities, including Beijing, Shanghai, Xi'an, Suzhou and Hangzhou, have been designated for pilot service outsourcing programs. Beginning Jan. 1, these companies are eligible for tax breaks, financial support, subsidies and intellectual property rights protection.
Technology-advanced service outsourcing companies are allowed to adopt flexible working hours for workers if they get approval from local human resources departments, said the document.
Technology development companies on the national level that are based in central and western China are expected to enjoy favorable tax policies when they apply for loans to launch service outsourcing projects.
The government also encourages telecom providers to help pave the way for enterprises to take the advantage of the outsourcing pilot to more easily communicate with the outsourcing service provider.
China also plans to establish and improve an outsourcing supervision mechanism, introduce new insurance products and establish a network of trained outsourcing personnel.
The government will offer service outsourcing companies a subsidy of up to 4,500 yuan (662 U.S. dollars) a year for every college graduate employed on a contract of at least one year.
The document cited Suzhou Industrial Park as an example, saying service companies there would enjoy an enterprise income tax rate of 15 percent, compared with 25 percent elsewhere in the country, until 2013.
Chinese Vice Premier Wang Qishan hosted a meeting in Nanjing, capital of Jiangsu Province, to discuss experiment of service outsourcing.
At the meeting, MOC Vice Minister Ma Xiuhong estimated that international service outsourcing volume would top 600 billion U.S. dollars by 2010.
"More foreign companies outsource parts of their business to overseas companies to reduce operation costs, which provide Chinese enterprises with lots of opportunities," Ma said.
According to the MOC, the country hopes to train 1.2 million service outsourcing professionals by 2013. During the same period, 1 million college graduates are expected to find new jobs in this sector.
However, world consultant firm Mckinsey & Comapany said in a report that China's outsourcing business growth still lags behind its neighbor, India.
Its statistics show India's service outsourcing volume was 42.2billion U.S. dollars in 2008, nine times China's. More than 2 million Indian people worked in the outsourcing sector, four times more than China's figures.
The McKinsey & Comapany report also forecasted that despite various difficulties, China still has great potential to develop outsourcing businesses. The country is expected to become the most important service outsourcing destination worldwide in the future.
Up to 2008, 3,300 Chinese companies provided service outsourcing business to overseas companies, with a contract volume of 4.69 billion U.S. dollars, official statistics show.
Editor: Yao
http://news.xinhuanet.com/english/2009-02/02/content_10752148.htm

Outsourcing

There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers, and have fewer overhead expenses to worry about.
Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, that might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.


Outsourcing is a trend that is becoming more common in information technology and other industries for services that have usually been regarded as intrinsic to managing a business. Outsourcing may prove highly beneficial for many companies like in saving money. This is very much true even though some people don't like outsourcing because it has its negative side it could be like that you don't contract people of your country so you don't help in that way with economy and it eliminates direct communication with its clients.I got this information here http://www.wisegeek.com/what-is-outsourcing.htm.

The outsourching agreements and tools,large organizations often use them to remove transactional overhead with pre-approved vendors by utilizing a single contract to cover all transactions with them as well as with their affiliates.
Master Services Agreement - Outsourcing of human resources and accounts payable services and associated processes (including collection of time and attendance data; calculation, reporting, payment of and accounting for pay and deductions; responding to and resolving employee payroll issues and inquiries; capturing, tracking, modifying and reporting all human relations related data (including current, terminated, vested, deceased, and annuitant employees); operating and maintaining the information technology environment which support human resources related processes; managing reimbursement of employee business expenses).http://partneringagreements.com/31os.htm?c1=ppc&source=goo1&kw=outsourcing

The International Association of Outsourcing Professionals™ (IAOP™) is compiling the fourth annual ranking of the world’s best outsourcing service providers — The Global Outsourcing 100. As part of The Global Outsourcing 100, IAOP is also introducing a new list, the World's Best Outsourcing Advisors.The Global Outsourcing 100 and its sub-lists are essential references for companies seeking new and expanded relationships with the best companies in the industry. The lists include companies from around the world that provide the full spectrum of outsourcing services — not just information technology and business process outsourcing, but also facility services, real estate and capital asset management, manufacturing and logistics.The World's Best Outsourcing Advisors, new for 2009, is geared specifically to companies that are outstanding global outsourcing advisors and consultants. In addition to being part of The Global Outsourcing 100 main list and sub-lists, the new list of advisors will rank the top consultant, legal and related advisory firms globally, and will be a valuable reference tool for companies needing expert advice and guidance with their outsourcing projects.

For me its fine outsourcing,but like Adriana said its makes other countrys rich or it helps their economy more than in your country.And in other countrys since there is no other job they work hard for less money.

Outsourcing - Maria Jose

So, here's my article everybody :) I leave you the link:http://www.nytimes.com/2007/09/25/business/worldbusiness/25outsource.html

Outsourcing - Dominique

Outsourcing.

Hewlett-Packard today declined to comment on industry speculation the company plans to outsource the jobs of an estimated 500 staff working in its support and service operation located in Rhodes, Sydney, offshore.
A well-placed source has told ZDNet Australia that HP has given the project management team overseeing the Rhodes operation a maximum of eight months to migrate its internal and corporate desktop support functions, employing 300 people, to Bangalore, India.
The source also claimed that HP was planning to axe a further 200 jobs at the Rhodes facility by outsourcing its operations management centre functions to China.
ZDNet Australia contacted HP several times for comment on the allegation. HP corporate communications manager, Hugh Scott said the company could only provide a "no comment" response at this stage.
The centre has been operating in Australia for four years. Work to establish the centre began in 1998 and it started operating in 1999. In 2000 it was upgraded.
The centre currently serves HP's key corporate clients such as Vodafone and Optus, and its internal staff.
The source claims the outsourcing deal is an example of the cost-cutting mentality that has dominated the company's strategy under the stewardship of Carly Fiorina.
"The problem I see with all of this is that Australia is gradually making other countries rich, these 300 people will go on the dole because there is no other work around," said the source.
"The corporate giants are paying HP, HP is paying India but there's no money coming into Australia. Its all money flowing out and you've got 300 more people sitting on the [labour] market".
Last week a McKinsey & Co released a report forecasting IT-enabled Services-Business Process Outsourcing (ITeS-BPO) would grow 60 percent to US$2.4 billion over the 2003 fiscal year.
A swathe of the IT industry's heavy-hitters including Dell, IBM, Accenture and Compaq have outsourced their functions to Indian-based operations over the last 12 months. Australia has not been immune to trend.
Last August Compaq moved its research and development centre from Queensland to India.
In November, documents leaked from within Qantas revealed that the airline's chief information officer, Fiona Balfour, told a meeting of ranking IT executives that outsourcing to India was a long-term strategy for survival.
In December 2001, the Department of Foreign Affairs and Trade alarmed the Australian IT industry when it was revealed that it had engaged activity widely viewed as encouraging Australian business to seek opportunities to cut-costs by transferring local functions to India.