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

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Requirements: less than 3000 words

Answer preview

The second reason why companies are rethinking their offshoring strategy is the increasing industrial automation. Industrial automation is the increased use of different control systems such as robots, computers, and information technologies in handling various business and manufacturing processes and activities in a company (The Economist, 2012). These control systems replace human beings, and industrial automation has been referred to as the second step after mechanization in the industrialization spectrum. Industrial automation has enabled companies to significantly lower their labor and operating costs. Some of the human operator costs that are eliminated by automation include paid leave and holidays, healthcare costs, bonuses, pension coverage, wages, and salaries, among others. Industrial automation increases

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Outsource and offshore business