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Offshore Outsourcing

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Running head: OFFSHORE OUTSOURCING Offshore Outsourcing Student’s Name Institutional Affiliation Date 1 OFFSHORE OUTSOURCING 2 Do you think systems should be developed entirely overseas? Why or why not? I do not think that the company’s accounting systems should be developed entirely oversees. The response is no because the company would incur extra management cost on communicating with the supplier (Ding, 2014). Expenses of supervising overseas operations can be great and there may as well be issues when managing the complex foreign concerns. What are the major advantages and disadvantages of developing systems offshore? One of the major advantages of developing systems is that the company is not just investing on comparative cost advantages of human resource but as well in existing economies of scale. The major disadvantage of off shoring is security issues since when the company is sharing and transmitting data to third party (Ding, 2014). There is always the risk of compromised data integrity and security breach in which the company’s confidential data may be exposed to unwanted parties. What security issues exist when using offshore developments? One of the securit ...
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