11.3 service outsourcing: benefit and drawbacks for all?
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11.3 SERVICE OUTSOURCING: BENEFIT AND DRAWBACKS FOR ALL?. Phan Truong Quoc BAIU08104 Nguyen Huynh Long Hung BAIU08090. Terms Definition. Outsourcing Offshoring Captive Outsourcing Offshore Outsourcing. Outsourcing. Job done by unaffiliated companies Abroad Captive Outsourcing - PowerPoint PPT PresentationTRANSCRIPT
Phan Truong Quoc BAIU08104Nguyen Huynh Long Hung
BAIU08090
11.3 SERVICE OUTSOURCING: BENEFIT AND DRAWBACKS FOR
ALL?
Terms Definition
1.Outsourcing2.Offshoring3.Captive Outsourcing4.Offshore Outsourcing
OutsourcingJob done by unaffiliated companies
Abroad Captive OutsourcingDomestic
OffshoringJob done overseas, whether by:Affiliated, internal: Intel, FujitsuUnaffiliated, external: FPT
Offshore Outsourcing
When abroad, logistics cost should be taken into consideration
2.1 Outsource Trend
Figure 2. United Kingdom: Outsourcing intensity of intermediate inputs(weighted average across all industries by outputs)
2.1 Outsource TrendSERVICE OUTSOURCE TREND INCREASING:1.Room for Growth (50% manufacturing 10%
service)2.Rate increase3.All sectors of economic – Outsourcing
Service Function4.Improvement of Education in LDCs5.Mobile of Service
2.1 Outsource Trend
THERE IS A TREND IN SERVICE OUTSOURCING
2.2 Biggest Outsourcers
2.2 Biggest Outsourcers
2.2 Biggest Outsourcers
IN SUM, SUPPORTED BY TRADE DATA
LARGE DCs Countries DOES NOT OUTSOURCE MORE INTENSELY THAN LDCs Countries
2.3 Biggest Insourcers
2.3 Biggest Insourcers
2.3 Biggest Insourcers
SMALLER Economies TURN OUT to be more INSOURCING-INTENSE Than the LARGER Ones
2.4 Surplus & Deficit
2.5 Outsource Service & Job Reduce
DOES SERVICE OUTSOURCING REDUCE JOB?
ANSWER IS NO- Outsourcing does NOT have a negative
effect on Service Employment- “In fact, the evidence suggest that workers
who lose jobs in one industry manage to find jobs in other growing industries.
2.6 Summary Key PointsThere is a Trend of Service Outsourcing
OUTSOURCE & INSOURCE, Largest Economies does NOT more INTENSE than Smaller Economies
Service Outsource does NOT come up with Job Reduction
3.0 Outsourcing in Vietnam
MENTION 2 THINGS:- Benefits- Challenges
3.1 Benefits
Cost: 1/9 of US; 1/3 of IndiaBig pool of laborStabilityGovernment Incentives Viet Kieu
3.2 Challenges
Government-related issues: weak macroeconomics policies, corruption, piracy
Poor InfrastructureLabor limits
THANK YOU FOR LISTENINGReference:-“Fear of Service Outsourcing, Is it justified?”, Mary Amiti and Shang-Jin Wei-Research Department, International Monetary Fund and CEPR-Research Department, International Monetary Fund, CEPR & NBERUS news sources: Dow Jones News Service, Financial Times, The New York Times (Abstracts), The SeattleTimes, The Wall Street Journal, The Washington Post. (2) UK news sources: Daily Mail (UK), Financial Times, TheEconomist (UK), The Guardian (UK), The Observer (UK), The Sunday Times (London), The Times (London).