89%(19)17 out of 19 people found this document helpful
This preview shows page 4 - 6 out of 8 pages.
with companies close to home (Koerner, 2011). This has been made especially prevalent as the increasing wages in China have diminished the once staggering cost savings that could be had byinternational outsourcing. So, the future of outsourcing is likely to involve companies not far away.Outsourcing is, of course, made possible largely by recent advances in telecommunications technology which allow instantaneous communications across thousands of miles. Until recently,these communications were limited to phone calls only, with long flights required for face-to-face interactions. However, teleconferencing and telecommuting technologies put the level of communications at the outsourced company on par with a company limited to one physical space. This will produce challenges for management. Recent research has shown that it is possible to effectively lead in a workplace with little physical interaction, so long as managementunderstands the importance of using praise and rewards in motivating people (Hardy, 2012). Looking even further into the future, the promise of cloud computing may mean that companies that once required expensive physical real estate to operate could be operated by a small group
using crowdsourced labor (Hardy, 2011). So, future organizations will be distributed and highly virtual, providing unique challenges to management.ConclusionThe trend towards an ever-flatter competitive environment is unlikely to change. Businesses can choose to capitalize on this by using technology to benefit their position, reinforcing core competencies while forming strategic partnerships with other companies. Outsourcing should notbe undertaken lightly, as the costs can quickly exceed the benefits if all possibilities are not planned for. Insourcing provides opportunity for businesses to reduce costs and allow others to achieve results superior to those that could be attained by the core company. As we look to the future, expect businesses to choose outsourcing partners close to home, and use crowdsourcing and cloud computing to deliver new business possibilities.Works CitedBloomberg. (2006). The future of outsourcing. Bloomberg Business. Retrieved June 28, 2012 from .Christie, P. J., Kwon, I. W., Stoeberl, P. A., & Baumhart, R. (2003). A cross-cultural comparison of ethical attitudes of business managers. Journal of Business Ethics, 46, 263–287.Dixon, P. (2008). The future of outsourcing – Impact on jobs. Global Change. Retrieved June 28,2012 from .Donnelly, S. B. (2004). Out of the box. Time Magazine. Retrieved June 27, 2012 from .Friedman, T. (2005a). The World is Flat. Farrar, Straus and Giroux, New York.Friedman, T. (2005b). It’s a flat world, after all. The New York Times. Retrieved June 27, 2012, from .