Globalisation Outsourcing

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What is outsourcing ? hires a • business practice in which a company third-party to perform tasks, handle operations or provide services for the company • companys often outsource information technology services (-programming & application development...). •can also outsource manufacturing processes, human resources tasks and financial functions (-> bookkeeping, payroll processing) OUTSOURCING reasons for outsourcing •way to lower costs •improve efficiencies •gain speed • principk is that because the third-party provider focuses on that particular task, it is able to do it better, faster and cheaper than the hiring company could GLOBAL PLAYERS ·companies with world-wide presence in production or distribution ·brand / leader in its market segment ex. Amazon Apple Nestlé UW Adidas Nike MULTINATIONAL COMPANIES ·companies whose activities are located in more than two countries. • heavily engaged in international trade ex. Coca-Cola Nescafe Top 5 countries for outsourcing India IT and software development. Philippines call center and IT support offshoring nearshoring United States tech support and IT-related services Brazil IT types of outsourcing onshoring Relocating work or services to lower-cost location in the company's own country Relocating work or services party providers overseas third- Relocating work or services to people in nearby, often bordering regions. and countries Exploitation •many multinational companies produce their goods very cheap in less economically developed countries (ledes) → cheaper because of a lower minimum wage · very small and broken factories -> often collaps people die ·child labour and many •such big companies only care about the money and not the people

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