Offshore Outsourcing As lower-level manufacturing became more simplified, U.S. companies outsourced manufacturing offshore. Today, increasing numbers of skilled, educated, middle-income workers in service-sector jobs such as accounting, law, finance, risk management, health care, and information technology are seeing their jobs outsourced offshore. As technical talent grows around the globe, offshore outsourcing will increase. Offshore outsourcing should be viewed from three perspectives: the customer's perspective, the employee's perspective, and the company's perspective. Each perspective has its advantages and disadvantages. Less-strategic tasks can be outsourced globally so that companies can focus on areas in which they can excel and grow. Outsourced work allows companies to create efficiencies that in fact let them hire more workers. Consumers benefit from lower prices generated by effective use of global resources and developing nations grow, thus fueling global economic growth. Jobs are lost permanently and wages fall due to low- cost competition offshore. Offshore outsourcing reduces product quality and can therefore cause permanent damage to a company's reputation. Communication among company members, with suppliers, and with customers becomes much more difficult. A combination of factors such as pressures to reduce labor costs, save on operational costs, improve productivity, and expand a labor force in other countries has caused companies to consider offshore outsourcing. When companies outsource, the idea is to save money to keep the prices of its product lower than the competition. This activity will help you identify the pros and cons of offshore outsourcing. Read the statements. Click and drag each item into the correct spot within the chart listing the pros and cons of offshore outsourcing. Some jobs lost permanently and wages fall Efficiencies are realized that allow for more hiring Pros Cons Customer Perspective Company focuses on core area Communication becomes difficult Employee Perspective Poor quality Lower Prices Company Perspective Reset