Offshoring Paper Essay Example for Free

Offshoring Paper EssayThis hold talks about a trend that started as far back as the 1980s when companies began move many jobs abroad mainly because of cheap labor. However, that trend is quickly changing. Companies are discovering that the wage gap is dwindling and many of the disadvantages are now starting to outweigh benefits of sending jobs abroad. One of the dits mentioned in the article is that compensation in china have risen 10-20% in the last 10 years, whereas wages in the States and Europe have remained about the same. Also, a nonher disadvantage of send production abroad is that shipping potentiometer be very expensive. In recent years shipping costs have gotten higher such that the cost of producing elsewhere and shipping to the US is no coherenter as cheap as it employ to be. The time factor is also a big issue. numerous times transit takes as long as six weeks which makes it hard for companies to fulfill their orders in a timely manner. In conclusion, the a rticle makes a note that a lot of companies are now recerebrateing their decision about going offshore. Opinion almost of the companies went offshore to save money, and I can see where they are coming from after all the livelong goal of having a business is to make profits however in my opinion many of the companies did not take the time to properly analyze the other costs involved in moving jobs offshore. Many also forgot to consider how it will affect the graphic symbol of their service when it comes to shipping time and sometimes the quality of the product. I am very happy that many jobs are coming back and I think the government needs to do more to encourage the companies.They should offer tax reductions where necessary so that the States will be able to compete in the global market. I also like the point the article makes, that just because companies are tending towards reducing offshoring does not mean they will be little global, infact distributing their activities more ev enly around the globe will make most companies more efficient.