Chem 534 Final Project

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TABLE OF CONTENTS CHAPTER 1: THE PROBLEM DEFINED …………..…………………………….. 6 Background Statement ..………………………………………….……….... 6 Purpose of the Study..………………………………………………………...8 Research Questions ………………………………………………………….9 Definition of Terms ……………………………………………………………9…show more content…
The primary advantages of outsourcing/offshoring to India is the wage arbitrage along with other significant cost reduction factors, access to a large pool of skilled professionals, faster cycle time for design and development of software and access to a large and growing market (Apte and Mason, 1995). Apte and Mason cited certain disadvantages as well. Difficulty with communication and coordination, potential for violation of intellectual property rights, lack of control on quality and project timetables, unclear governmental attitudes, difficulty in managing cultural diversity and unstable political, economic and social environments were disadvantages acknowledged by Apte and Mason. Ramarapu (1997) supports the later issues as disadvantages as he cites that operations managers must be aware of the risks involved with dealing in different legal, cultural, political and economic environments. Elmuti (2000) refers to an interesting disadvantage regarding people. He found that one of the biggest obstacles of outsourcing is the fear of people losing employment. This can lead to morale issues with the remaining employees. In a recent Information Week article written by McDougall (2004), an interview with a financial analyst at Schwab Soundview Capital Markets revealed that language and cultural differences might inhibit growth in offshore BPO
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