Target Corporation Outsourcing: Challenges and Opportunities

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Target Corporation Outsourcing: Challenges and Opportunities Debra Schleitwiler Southern New Hampshire University Abstract As one of the world’s leading retailers, Target Corporation has chosen to outsource workers in many of its divisions, particularly in IT or Information Technology. Centered in Bangalore, India, Target Corporation as an American company is presented with many challenges as well as opportunities. These issues are not limited to the expected legal and economic impact, but also include cultural, political, language, and customs hurdles that need to be addressed and dealt with. Target Corporation management, working in an entirely different business milieu, has taken the time to understand these differences and integrate them into their operations in Bangalore, allowing for a relatively comfortable business atmosphere where both the American and Indian workers can be equally successful. Given this success, Target Corporation could rest on its laurels and pat itself on the back, however to continue to be effective, employee input and ongoing practice revisions by management are necessary. Target Corporation Outsourcing: Challenges and Opportunities Off-Shoring vs. Outsourcing In order to remain competitive in today’s volatile economic environment, many companies are looking for ways to cut costs. One major new step has been the growing industry trend of outsourcing work to countries where wages are less expensive and expected benefits are less financially based. There is a huge difference between outsourcing and off-shoring however, and this difference needs to be understood in order to effectively discuss the ramifications and benefits specific to outsourcing. Off-shoring refers to the expansion of a company into a foreign market, be it for goods or services. However, when a company outsources, the company enters into a

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