Why Outsourcing is Bad for Business

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Minute MBA by OnlineMBA.com

Minute MBA by OnlineMBA.com

11 жыл бұрын

View full post: www.onlinemba.com/blog/video-w...
As countries like China and India become leaders in manufacturing the costs of their expertise rises diminishing their advantage against US counterparts. Adversely, convoluted and increasingly risky supply chains dependent on inexperienced vendors have turned once stable brands like Boeing, into the perfect "reshoring" case study.
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Пікірлер: 146
@davidturner4613
@davidturner4613 8 жыл бұрын
Just going to throw it out there.. Your drawing skills are incredible!
@checkyourrelationtoreality3327
@checkyourrelationtoreality3327 3 жыл бұрын
He outsourced it
@leonardodamian1893
@leonardodamian1893 3 жыл бұрын
i realize I am kinda randomly asking but does anyone know a good place to stream newly released movies online?
@davidbrody307
@davidbrody307 3 жыл бұрын
@Leonardo Damian i watch on Flixzone. Just search on google for it =)
@blackneos940
@blackneos940 5 жыл бұрын
Not to mention the outsourcing of Programming jobs to India... Unfortunately for Indians, most schools in India use outdated Compilers and practices, and focus on churning out scores of unskilled Programmers rather than a few GOOD Programmers. This then results in poor quality Code, which then has to be fixed by a freelance Programmer in the U.S..
@andres-rodriguez
@andres-rodriguez 2 жыл бұрын
very interesting point. I remember early 2000s how many of those IT jobs were outsourced. I have still feared one day this trend will happen again.
@infernus42254
@infernus42254 2 жыл бұрын
And now entire economies are hinged on what was basically cost cutting lol.
@joeshmoe8952
@joeshmoe8952 2 жыл бұрын
I do not do business with companies that outsource their customer service.
@divoltious
@divoltious 3 жыл бұрын
This aged so well
@gymgem3
@gymgem3 8 жыл бұрын
Doing an essay-style report on global outsourcing and this has provided some great examples, thanks!
@PrideandBeauty
@PrideandBeauty 2 ай бұрын
Can we get an updated video. Have the outsourcing trend changed in the last Decade?
@barbie6153
@barbie6153 8 жыл бұрын
Unfortunately, many companies still rather outsourcing.
@PlantGreenThree
@PlantGreenThree 8 жыл бұрын
Was this video outsourced to voice over + white board video maker off-shore company?
@manivasagam99
@manivasagam99 6 жыл бұрын
lol
@inconspicioussharter7614
@inconspicioussharter7614 Ай бұрын
Made 10 years ago but now even more intensely relevant
@MultiRandomBS
@MultiRandomBS 10 жыл бұрын
reasonable, but only applies to a part of outsourcing, for example the classical IT-Development ousourcing to India or as you say, production. BUT you must not forget two factors: many companies are willing to risk even higher costs for the sake of flexibility, especially when it comes to unstable/unkown markets, for example expanding sales to a different continet. The other factor being outsourcing parts like your HR (either as a whole business unit) or just parts like recruiting to a partner that is payed on a per capita basis (only when making the placement). These forms of outsourcing will increase significantly, even exponentially with cost pressure.
@ashbythehour
@ashbythehour 5 жыл бұрын
THIS AUDIO VISUAL WAS AMAZING
@CoachingByExperts
@CoachingByExperts 10 жыл бұрын
Bring American jobs back to America - Off Shoring was just plain STUPID
@hdlpghgtvytpvpxdmcfna992
@hdlpghgtvytpvpxdmcfna992 3 жыл бұрын
Der Apfel fällt selbst hinein.
@completeoutsource
@completeoutsource 10 жыл бұрын
Nice! Thanks for the tips. Good job!
@sville54
@sville54 8 жыл бұрын
I'm writing an argumentative analysis paper right now on this video, I was wondering if you could tell me the narrator of this video, and what his degree is, and where he is from. Possibly if he is just hired for his voice, or all of this is his work. You guys did a great job with this video, and I'm on your side. I would really appreciate a response. Thank you.
@4rnorthwest
@4rnorthwest 3 жыл бұрын
Ha! That’ll happen😂
@ericrodgers4494
@ericrodgers4494 6 жыл бұрын
Completely agree. Outsourcing can also refer to conducting business anywhere outside your geographical range or sphere of influence. This means domestic. Outsourcing has worked extremely well for small businesses and professionals across a wide variety of industries. There's so much good and bad advice in the entrepreneurial community from these so-called experts we must learn to read in between the lines and experiment for ourselves. This entire presentation was regurgitated information about what everyone else was saying.
@hdlpghgtvytpvpxdmcfna992
@hdlpghgtvytpvpxdmcfna992 3 жыл бұрын
Wer anderen eine Grube gräbt sollte nicht mit Steinen werfen.
@lechecaballito
@lechecaballito 5 жыл бұрын
Thank you! This was really helpful! But the difference between outsourcing and offshoring wasn't totally clear? Could you explain that to me please?
@subaru6417
@subaru6417 5 жыл бұрын
outsourcing: contracting services in another country. offshoring: building and producing in another country.
@rug4565
@rug4565 Жыл бұрын
it does not need to be another country....you can outsource an activity to someone domestically and it is still considered outcourcing....
@Monkeyradar
@Monkeyradar 11 жыл бұрын
They took our JERBS.
@hdlpghgtvytpvpxdmcfna992
@hdlpghgtvytpvpxdmcfna992 3 жыл бұрын
Wer im Glashaus sitzt fällt nicht weit vom Stamm.
@beerhangover4779
@beerhangover4779 8 жыл бұрын
Why did he talk about off-shoring the whole time? I was looking for outsourcing.
@Tippy2forU
@Tippy2forU 5 жыл бұрын
"obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source." You didn't know the definition of outsourcing?
@bluwng
@bluwng 4 жыл бұрын
keecefly narrow definition. I am looking for an alternate supplier, sourcing outside of my company not outside of the country.
@mamabearcake9542
@mamabearcake9542 4 жыл бұрын
awesome well explained
@nwzxxx1756
@nwzxxx1756 7 жыл бұрын
Agreed outsourcing *IS* bad for business
@alexanderchristopher2774
@alexanderchristopher2774 2 жыл бұрын
THANK YOU 😊
@jcs7757
@jcs7757 5 жыл бұрын
so mind blowing!
@vanbawi2054
@vanbawi2054 6 жыл бұрын
insightful informations on outsourcing
@Saffronix2022
@Saffronix2022 10 жыл бұрын
Sounds plausible. But is it true? Does it map to every case?
@artbyrobot1
@artbyrobot1 5 жыл бұрын
of course not. It is a ridiculous video. People make a killing using foreign cheap labor and could not even start their business if that cheap labor was not available. The premise of this video is LAUGHABLE.
@shanegriffin8888
@shanegriffin8888 5 жыл бұрын
Why would you choose to add in the annoying squeak of a dry-erase marker?
@mrramennoodles8451
@mrramennoodles8451 5 жыл бұрын
that's so true
@jayedgar8177
@jayedgar8177 7 жыл бұрын
The contents doesn't really reflect the title. Outsourcing can sometimes be bad for business, not always. In the long run free markets are always better for everyone on all sides of transactions. Video could have brought up Ricardo's Law of Comparative Advantage.
@ericrodgers4494
@ericrodgers4494 6 жыл бұрын
Completely agree. Outsourcing can also refer to conducting business anywhere outside your geographical range or sphere of influence. This means domestic. Outsourcing has worked extremely well for small businesses and professionals across a wide variety of industries. There's so much good and bad advice in the entrepreneurial community from these so-called experts we must learn to read in between the lines and experiment for ourselves. This entire presentation was regurgitated information about what everyone else was saying.
@michaelcarlton5
@michaelcarlton5 9 жыл бұрын
Like in any country, the price for all commodities have risen in India over the decade. So you cannot just expect India to not increase its price for outsourcing. People in India need to eat and transport themselves as well. Compared to other outsourcing firms, Integra still offers low cost high quality outsourcing solutions to its clients. If you go after bigger brands thinking that only they can offer good quality service, then that's where you go wrong. You need to do more research before you want to outsource to someone.
@auxiliar94
@auxiliar94 8 жыл бұрын
Can someone tell me pros and cons of outsourcing in today is world please. Thanks
@kkhlee1
@kkhlee1 7 жыл бұрын
Pros - it keeps products affordable, wages are much lower overseas and also Free trade. Despite the video saying wages are high overseas for managers, but it is still cheaper to hire 100 workers. wages being lower overseas has a domino effect, building the machinery, transportation costs, Rental of property, material costs, labour, etc. - it keeps the pollution down in American (why shit where you eat) - Its easier to blame some other country for making a shitty product (although its the companies fault for not inspecting the products and putting profits first, you get what you pay for but this is off topic) - Labor laws are different, they can work people for 10+ hours a day, which means faster production Cons Cant really think of any except for a business standpoint - Lack of jobs ( but who really wants to do these types of jobs, and wage will be too high, a 2 dollar toothbrush may end up selling for $10 ) - shipment can be lost or damaged - When products are being mass produced they tend to make ( i don't know the numbers) 10% more as an example incase of defects, the 10% extra are not given to the company that ordered it, but is sold online or at a black market. So someone else is profiting off your product without paying any royalties. Alot of "fake" products actually come from these overproduced factories - outsourcing phone calls to other countries is bad because they can only reply like a robot, all the answers are written down, they cannot resolve alot of problems because lack of knowledge of the outside world
@philippineoutsource3
@philippineoutsource3 10 жыл бұрын
The success of businesses will outwit this argument. Yes, there are cons but the pros are overwhelming. Just a though :)
@AdahLael
@AdahLael 4 жыл бұрын
Watching the artist was more fun than the video! But good content, too.
@yeosubambada2183
@yeosubambada2183 3 жыл бұрын
Ralo bring me here !
@Manda24W
@Manda24W 5 жыл бұрын
why the squeaking marker,it's all I heard
@alisaenduro
@alisaenduro 5 жыл бұрын
so true I watched it half because I couldn't stand the sound of the marker
@mikevincent6332
@mikevincent6332 10 жыл бұрын
Do you mean JARBS?
@krakenn5595
@krakenn5595 6 жыл бұрын
hello from visitatie 5 IT BEANTWOORDEN
@Dk-uh4no
@Dk-uh4no 5 ай бұрын
Without outsourcing USA would not had been the tech powerhouse it today is!
@artsygirlify
@artsygirlify 6 жыл бұрын
wow...
@ThePolskiKuba
@ThePolskiKuba 7 жыл бұрын
I love you.
@cholesterol804
@cholesterol804 3 жыл бұрын
Its fine. The government can just print more money and give it to the people. That would make america great again. Doing nothing while getting paid who wouldnt want that😂
@hibikitachibana1484
@hibikitachibana1484 2 жыл бұрын
Inflation
@sonabhanu3841
@sonabhanu3841 5 жыл бұрын
ke vaba kaj korta hobe
@jollyhappy922
@jollyhappy922 4 жыл бұрын
Awesome drawing skills 😍😁😁
@R23BYN
@R23BYN 10 жыл бұрын
aaaargh that pen squeak is awful! So distracting, which is unfortunate as these videos are very informative.
@TheAmphicyon
@TheAmphicyon 8 жыл бұрын
Times changed, outsourcing sucks now, was good not anymore.
@nathanjaroszynski6210
@nathanjaroszynski6210 5 жыл бұрын
It's only half the picture : ousourcing boring jobs in Europe for instance does nothing to improve relations. Imagine making less than 7k per year. That's the max rev in some corpos in eastern Europe where the living costs are actually quite high. Not going to make a lasting impression of generosity amongst allies...
@nathanjaroszynski6210
@nathanjaroszynski6210 5 жыл бұрын
Outsourcing happens because there is an initial salary gap. If that's the case then it just slowly diminishes until pay becomes superior in the outsourced country. Market logic. Then what is the point of keeping the outsourcing facility? Also can someone explain why in some countries like eastern europe pay for new jobs in corporations is actually going down over the time scale presented by the video. Again in eastern Europe the salaries are locked at 7K -EURO per year. Where is the market logic? Kindly adress the discrepancy, you can't only look at half the picture.
@nathanjaroszynski6210
@nathanjaroszynski6210 5 жыл бұрын
Ok just to clarify, thank you for the video, it's just more can be said on the subject. :)
@artemmartynenko6417
@artemmartynenko6417 Жыл бұрын
Isn't it just normal temporary historical process? Uneven distribution of human resources (in any sense) leads to outsourcing - > outsourcing leads to alignment - > alignment leads to a return to traditional production patterns (but the world has already become a little better and homogeneous). That's how the market actually works.
@Bpooutsourcingremote
@Bpooutsourcingremote 10 жыл бұрын
Outsourcing is not bad for business, in fact, many big companies outsource in other countries just to save and be successful in their business.
@Tippy2forU
@Tippy2forU 5 жыл бұрын
It is bad for business. You have to deal with crappy work from subpar foreign workers with outdated education. Indian engineers are the worst.
@asoka7752
@asoka7752 Жыл бұрын
@@Tippy2forU White countries have affirmative actions that results in unskilled, low iq people to be hired for the sake of diversity.
@ronburgundy3172
@ronburgundy3172 Жыл бұрын
@@Tippy2forU Indian people have taken over the IT field and they have the worst ways to treat their employees but the higher ups won't say anything cuz they make them money
@reallytired6390
@reallytired6390 5 жыл бұрын
Why did you have to add an artificial marker against the whiteboard squeak effect back into the video? It's better without it. The noise made me cringe each time.
@defjam126
@defjam126 10 жыл бұрын
You talk as if it's some kind of revelation that highly skilled workers would demand for more money. If we could remove the overly used "taking advantage of other peoples situation" out of the equation when we talk business, I'm certain we will all have something more interesting to talk about
@voyagersmarch8776
@voyagersmarch8776 3 ай бұрын
Ok broke loser
@AnonymousAlaskan
@AnonymousAlaskan 4 жыл бұрын
There are some outliers. There was a shortage of engineers in the US, and surplus in other countries. There have been a lot of projects that would have been too expensive to develop solutions for if it hadn't been for offshore and less expensive engineering teams willing to do the job, especially in countries where the economy isn't is inflated at the USA. I could be bias though, I recently started a company www.versa.one/about. We help owners, designers and builders manage remote teams for their mechanical and structural steel scopes. With the right approach, they can multiply resources, keep risk low, enter new markets and take their business to a level they never thought possible. It's not always about the money. But allowing principals to focus on what they do best, be creative with their solutions and focus on the day to day challenges while the gears keep turning in the background.
@earthlings4592
@earthlings4592 3 жыл бұрын
That's great
@Atmost11
@Atmost11 3 жыл бұрын
That was merely your propaganda. You tried real hard not to find your qualified Americans and you know it
@TriPham-xd9wk
@TriPham-xd9wk 3 жыл бұрын
But outsource only 10% or 15 % of total work production is a good move for tallent search and acquiring new human resources
@damagedreputation
@damagedreputation 10 жыл бұрын
There are some facts about this video but outsourcing is not bad for business, Outsourcing can help to grow the marketing business industry .
@Tippy2forU
@Tippy2forU 5 жыл бұрын
Not when the work sucks. Outsourcing is now at the heart of Boeing's issues. They fired qualified engineers and got bottom bucket engineers from India.
@erickosv
@erickosv 9 жыл бұрын
That's the reason why you have to outsource from Mexico. you can manufacture anything you want with short lead times great quality and service.
@mannymontealto9934
@mannymontealto9934 5 жыл бұрын
Watch this video! kzfaq.info/get/bejne/g9ulfq1z3rqcp4E.html for additional knoweldge about outsourcing.
@jimenacantillana6317
@jimenacantillana6317 Жыл бұрын
Chile está lleno de estas empresas con contratos y sueldos miserables con una pésima gestión de personas como también las capacitaciones a su personal y ni hablar del trato .. si este video es de hace 10 años fue un gran presagio.
@TriPham-xd9wk
@TriPham-xd9wk 3 жыл бұрын
Out source movement was to find a perfect business partner for future perfect business marriage
@Theepicfrenchguy
@Theepicfrenchguy 3 жыл бұрын
So outdated
@4rnorthwest
@4rnorthwest 3 жыл бұрын
This is so highly dependent on what exactly is being outsourced. Like anything there is nuance. To generalize like this is disingenuous at best. We’re in a global economy. Stop pretending like imaginary lines in dirt and water some how makes it wrong.🙄
@kodak_blackglee
@kodak_blackglee 3 жыл бұрын
These are all examples on a big scale.. outsourcing is actually really good for normal middle class sized businesses
@Atmost11
@Atmost11 3 жыл бұрын
Americans who hire non-Americans should move and become a citizen of that country
@kodak_blackglee
@kodak_blackglee 3 жыл бұрын
@@Atmost11 I agree double citizenship and still working in the US
@Atmost11
@Atmost11 3 жыл бұрын
@@kodak_blackglee Offshoring has been good for you, but for alot of laid off Americans, it isnt. I just gave 12 months of on the job training to my overseas replacements. Nobody in IT ever received such quality training and support on the job.
@kodak_blackglee
@kodak_blackglee 3 жыл бұрын
@@Atmost11 I am American .. and benefiting from outsourcing people from different countries that speak English fluently by only having to pay them $4 or $5 per hour instead of paying someone here $13-$15 per hour .. what you should be mad about is Biden and these democrat politicians spending billions on wars, and helping other countries before ours, and raising the minimum wage .. all of that raises taxes and we (the middle class have to look at other options
@Atmost11
@Atmost11 3 жыл бұрын
@@kodak_blackglee If anybody is worthy of hatred, it is those who put up with un-patriotic people like you, who betray your country during a crisis, so proudly. You claim to be benefitting, I doubt it, but being an American was more benefit to you than what you sold out your country for.
@asuliberty
@asuliberty 11 жыл бұрын
The issue isn't outsourcing, but the over intrusive U.S. government with it's intense regulations, wage and worker law in addition to it's intrusion in the private market. If the U.S. government simply released the strange hold they have on society, business would be less inclined to outsource.
@antred11
@antred11 2 жыл бұрын
BS. What you're advocating is to allow them to exploit their domestic workforce just as ruthlessly as they their "offshore" workforce, removing the need to move their profit-whoring operations elsewhere.
@asuliberty
@asuliberty 11 жыл бұрын
This is a horrible argument. This is the beauty of Capitalism, it raises the wages of other countries and allows humanity to work together towards improving everyone's lives. It's like the world as a whole working to help each other but with a self-interest. It's beautiful. The issue with outsourcing isn't that some workers are abused, but that some people fight against sweat shops. They want sweat shops shut down. Sweat shops pay much more than average in those countries. They're coveted.
@КГБКолДжорджКостанца
@КГБКолДжорджКостанца 5 жыл бұрын
Fuck you, and fuck capitalism, this is slavery to others, and sweat shops pay less
@artbyrobot1
@artbyrobot1 5 жыл бұрын
@@КГБКолДжорджКостанца comrade, you are ignorant. These 3rd world countries have an upper middle class that makes $500/year and afford the best house in the neighborhood. When you think companies pay them shit pay ($500/yr sounds shit to YOU based on spending power HERE) they are in fact making 100x that amount in buying power over there. If you pay someone in pakistan or phillipenes $0.17/hr they are making $17/hr in their local spending power.
@nh83846
@nh83846 11 жыл бұрын
This is not why outsourcing is bad, this is just some pitfalls.. There are many good business cases of outsourcing. Having a youtube account name with "MBA" in it, your videos seems to be quite unacademic.
@abel2088
@abel2088 6 жыл бұрын
Its this work properganda
@JohnWilliams-es6tx
@JohnWilliams-es6tx 8 жыл бұрын
ok guys , take your manufacturing back from China and Services from India we will simply boycott american products and services.. Problems easily solved
@octopuss1918
@octopuss1918 4 ай бұрын
We don't need you foreign losers.
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