A contemporary business refers to a business environment that has a huge competitive market and one that is constantly changing: American Express (Amex) is an example of such. The company applies the use various business techniques to attain positive social change. The company focuses on implementing social development as a financial goal. It is known for business process outsourcing activities when it comes to delivery customer service. It also widely incorporates the use of outsourcing companies in offering chat and phone support services.
The United States’ economy has been on the receiving end of various offshoring trends. Among the major outsourcing trends include the Information Communication technology trend. These technologies accommodated digitization which encouraged the separation of service processes. Technology is fast growing and it will only get better over the years, it is likely that the technological improvements will affect any offshoring activities and keep the head companies up to date with any changes in their branch offices.
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Offshore source market trends have also spread among US-based companies. The finding of the existence of a ready market for their products and guarantee constant supply in the outside world mostly in Asia contributed to the rise in the trend. For example, previously, US-based companies shipped some of the production of electronics to Japan who began designing and producing their brands and resultantly took over the global industry. The company should seek to reduce their offshoring potency for the purpose of reducing the high unemployment rate and loss of markets caused by the trend.
Outsourcing trends have also been experienced in the United States. Among the key trends include Information Communication Technology trends highlighted earlier whereby the companies incorporate the use of third-party companies to act as service providers of IT or other business operations. The US companies took advantage of the skills and cost differences of the third party to improve their efficiency and management of operations. Due to technology’s high growth rate, Companies are likely to spend more on catering for the outsourcing trend, companies are likely to shift their focus to develop their own service providing centers.
An offshore trend that also emerged is the increasing dominance of certain locations as major offshoring targets. The successes for these companies provide enough incentive for the American companies to adopt these countries as their target and resultantly increase their output especially for Amex as a financial institution. By expanding their service delivery locations the company is able to take advantage of the cheap labor, reduce concentration risk and take advantage of new markets.
Most of the great companies previously believed that efficiency of a company’s operations can only be achieved by having maximum authority and control of their activities and staff. Today most of them including the leading companies are cases in point of this outsourcing trend: In place of the Rouge plant, Nike is provided the responsibility of outsourcing the manufacture of all of its sporting and clothing equipment, as it focuses marketing and design. In future, onshore development teams are more likely to bring the new level of problem-solving skills and creativity to solving problems not seen in most outsourced firms.
A pattern that started in the late 1970s and picked up in 1990s with the establishment of trade relations with Eastern Europe, India and, China. The US firms were faced with stiff competition from the imports which forced them to find better and cheaper alternative means of carrying out their businesses. Soon after the businesses experienced a wave of hostile takeovers and companies feared the risk of losing their businesses if they failed to maximize the short-term profits and shared prices. Immediately, outsourcing became a test of the company’s ability to take risks. This trend is likely to exist in the future to maintain the competition and provide security for the companies.
References
Amadeo, K. (2018). 7 Things You Should Know About Outsourcing . The Balance . Retrieved 24 April 2018, from https://www.thebalance.com/how-outsourcing-jobs-affects-the-u-s- economy-3306279
Jackson, S. (2014). Reversing outsourcing trend, many U.S. companies bring IT back home - Upstate Business Journal . Upstate Business Journal . Retrieved 24 April 2018, from https://upstatebusinessjournal.com/reversing-outsourcing-trend-many-u-s-companies- bring-back-home/
Palugod, P., & Palugod, A. (2012). GLOBAL TRENDS IN OFFSHORING AND OUTSOURCING . Pdfs.semanticscholar.org . Retrieved 24 April 2018, from https://pdfs.semanticscholar.org/627c/0ae280e9807d29f44a23ba1e48ae1b62b462.pdf
Patrick, K. (2012). What is the future of offshoring? . Supply Chain Dive . Retrieved 24 April 2018, from https://www.supplychaindive.com/news/influencers-roundtable-offshoring- nearshoring-disruption-supply-chain/508493/
Pearlstein, S. (2012). Outsourcing: What’s the true impact? Counting jobs is only part of the answer. . Washington Post . Retrieved 24 April 2018, from https://www.washingtonpost.com/business/economy/outsourcings-net-effect-on-us-jobs- still-an-open-ended- question/2012/07/01/gJQAs1szGW_story.html?utm_term=.964069eb5dd0
