The study will examine the affects of offshore outsourcing as an implication of the process of globalization on the Australian through the primary and secondary research. Liptrot suggests that “Globalization is not a phenomenon. It is not some passing trend. The present research has identified that today it is an overarching international system shaping the domestic politics and foreign relations of virtually every country, and we need to understand it”. Another view of globalization is put forward by Porter who is of the opinion that “Globalization is much like fire. The fire itself is neither good nor bad. Used properly, it can cook food, sterilize water, and heat our homes. Used carelessly, fire can destroy homes and forests in an instant”. Both of these definitions provide a newer view of globalization that is not restricted in any way. The paper tells that offshore outsourcing in Australia has remained in the spotlight for a few years now and the close ties that Australian companies have with US-based companies serve as stimulants for offshore outsourcing in the region. The author has rightly presented that offshore outsourcing is expected to acquire momentum in Australia in the following years as globalization continues to have implications on industries around the world. While Australian has become well known for IT-based outsourcing, the region is steadily developing a reputation for outsourcing in more areas.
The discussion seeks to answer the questions: How does offshore outsourcing impact the growth of the Australian economy? Are currently present Australian policies and regulations adequate to deal with potential problems in modern-day offshore outsourcing?…
Globalization leads to drastic changes in social conditions of millions of world’s residents, expressing itself both in constant shifts in global production and the disruption of ‘usual’ cultural conventions. That is why it is necessary to analyze the problem of globalization, so that the overcoming of its drawbacks may be possible.
In this model, firms hire an external organization to carry out some of its business functions in another country. The four main types of offshore outsourcing are information technology outsourcing (ITO), offshore software development (software R and D), business process outsourcing (BPO) and knowledge process outsourcing (KPO).
Some off the tasks commonly outsourced include legal practices, part manufacturing, and accounting practices. Normally, the other company has a comparative advantage in that job which makes outsourcing profits both sides. Offshore outsourcing (international outsourcing or off-shoring) is a process through which a company obtains services or inputs from a company in a foreign nation.
However, an organization would have achieved success and effectively reduce overheads if it can offer product differentiation, reduce costs, maintain efficient supplier relationships, communicate directly with customers, if it can maintain flexible manufacturing to suit individual customer needs.
A number of factors have become considered before a firm can decide whether outsourcing is the right path for the firm to take.o many organizations the objective of outsourcing is to improve the company’s financial competitiveness, majorly through reduction of costs.
Globalization is simply an international process which arises from interchanging of products, ideas, world views and many other aspects of culture. This process has an effect on the culture, on the environment, on the political system, on the prosperity and development of the economy and also on the well being in the societies around the whole world (Globalization101, 2012).
First, we review historical changes from outsourcing to offshore outsourcing. Offshore services have grown rapidly in recent years. (Davis, G.; Ein-Dor, P.; King, W.; and Torkzadeh, R. 2006). The advent of the Internet in large scale operations gave industry the opportunity for more cost effective labor since the 1990s.