Will Irish companies continue to outsource?

Sandals

Do you think the recent trends will continue, will we contine to rely on outsourcing? and offshore? or will we rely on them more, or will Ireland become more self sustainable.

REDZ

I'd say our low tax rate should keep the multinational manufacturers and fund business here. Yeah there will be increased offshoring of things like call centres, but sure didn't they come here to offshore from england in the first place.
Irelands economy is shifting more towards services anyway and by definition they can't offshore as much.
Outsoucing on the other hand will grow and grow as companies want to avoid future pension and benefit headaches, look at GM for example. This is quite a nasty trend, but there is feck all anyone can do to stop it. Except maybe join in!
Witiness the growth of facility managment or marketing outsourcing for some juicy examples, any way better get back to work before im outsourced!

Sandals

Ok thanks for your help i am writing a term paper on this, the title is ,
Taken Together, ‘Offshoring’ and ‘Outsorcing’ will dramatically alter the shape of Irish Business in the future.
Discuss.

Do you have any pointers, I am unsure how it will change the shape in the future, do they want me to discuss foreign firms outsourcing Irish companies or vica verca?

BrianD

You know what I find bizarre ..

"We need extra workers to service the economy"

As Garrett Fitzgerald stated in a little publicised newspaper article - is the economy not supposed to service the people???

gerrycollins

BrianD wrote:

You know what I find bizarre ..

"We need extra workers to service the economy"

As Garrett Fitzgerald stated in a little publicised newspaper article - is the economy not supposed to service the people???

is it not just a circle?
ppl work pay taxes
taxes pay for country
better country more employment
more ppl work more taxes
better country
i know this is a complete generaliseation just like the chicken and the egg

TempestSabre

BrianD wrote:

You know what I find bizarre ..

"We need extra workers to service the economy"

As Garrett Fitzgerald stated in a little publicised newspaper article - is the economy not supposed to service the people???

Well I think thats the crux of the matter. How much do you let companies profiteer at the expense of the people. Outsourcing is fine if you are making money from it. But at the other end if your wages are driven lower, and costs continue to increase, then you are between a rock and a hard place.

Remember Ireland has a very unequal spread of wealth, and our infrastructure, services, health etc are quite poor.

REDZ

Sandals wrote:

‘Offshoring’ and ‘Outsorcing’ will dramatically alter the shape of Irish Business in the future.
Discuss.

Do you have any pointers, I am unsure how it will change the shape in the future, do they want me to discuss foreign firms outsourcing Irish companies or vica verca?

Companies will focus on the core skills in the case of outsourcing, leaving things like building maintenance, human resources, I.T etc to other businesses in an effort to decrease longterm costs, and increase efficency. Another big factor in outsouring is reducing employee costs now and in the future, simply loo to GM and Ford to see the issues that a lack of outsourcing throws up long term.
In terms of offshoring, some jobs in intensive manufacuring operations will go to India or China. And some special service based businesses like Irish ferries will offshore(Boo), most service business cannot offshore though, due to thier geographiclly dependant nature, but we will also lose more call centre jobs.
All in all as services take a larger share of our economy, offshoring trends will have less impact.
As our economy futher evolves trends in outsourcing will increase, this will benefit companies that provide outsourced services like FM, IT, HR and marketing etc. It will become more difficult for non core staff in traditional businesses to retain their jobs.
Overall outsourcing is generally good for business and the economy, in terms of competitiviness and business focus, however it is not good for the employees who are outsourced. Offshoring is hopefully not that relevant in a modern knowledge based economy, hopefully!

Sandals

REDZ wrote:

Companies will focus on the core skills in the case of outsourcing, leaving things like building maintenance, human resources, I.T etc to other businesses in an effort to decrease longterm costs, and increase efficency. Another big factor in outsouring is reducing employee costs now and in the future, simply loo to GM and Ford to see the issues that a lack of outsourcing throws up long term.
In terms of offshoring, some jobs in intensive manufacuring operations will go to India or China. And some special service based businesses like Irish ferries will offshore(Boo), most service business cannot offshore though, due to thier geographiclly dependant nature, but we will also lose more call centre jobs.
All in all as services take a larger share of our economy, offshoring trends will have less impact.
As our economy futher evolves trends in outsourcing will increase, this will benefit companies that provide outsourced services like FM, IT, HR and marketing etc. It will become more difficult for non core staff in traditional businesses to retain their jobs.
Overall outsourcing is generally good for business and the economy, in terms of competitiviness and business focus, however it is not good for the employees who are outsourced. Offshoring is hopefully not that relevant in a modern knowledge based economy, hopefully!

Ok thanks a million man that is really good stuff, I can really build my essay from there thank you.

copacetic

REDZ wrote:

Companies will focus on the core skills in the case of outsourcing, leaving things like building maintenance, human resources, I.T etc to other businesses in an effort to decrease longterm costs, and increase efficency. Another big factor in outsouring is reducing employee costs now and in the future, simply loo to GM and Ford to see the issues that a lack of outsourcing throws up long term.
In terms of offshoring, some jobs in intensive manufacuring operations will go to India or China. And some special service based businesses like Irish ferries will offshore(Boo), most service business cannot offshore though, due to thier geographiclly dependant nature, but we will also lose more call centre jobs.
All in all as services take a larger share of our economy, offshoring trends will have less impact.
As our economy futher evolves trends in outsourcing will increase, this will benefit companies that provide outsourced services like FM, IT, HR and marketing etc. It will become more difficult for non core staff in traditional businesses to retain their jobs.
Overall outsourcing is generally good for business and the economy, in terms of competitiviness and business focus, however it is not good for the employees who are outsourced. Offshoring is hopefully not that relevant in a modern knowledge based economy, hopefully!

Have to day that 'offshoring' looks like it is the way forward for a lot of higher tech jobs too. The costs are so much lower and because the workers are living in a 'low cost' economy their relative std of living is much higher for a lower wage.

Currently it might cost say 500/day to hire a contractor in Ireland, for the same cost you could have 3/4 degree qualified highly skillled contractors working out of india/far east. You can have some issues, but with skype etc keeping in touch with them is a piece of cake..

I think this is going to grow and grow, we'll be doing the specs and ideas in Ireland and offshoring the detail work ..