Manufacturing is a major part of the computer hardware industry and keeping costs low and profit high is always a factor. Many companies such as HP, IBM and Dell outsource production of their products. Because so many parts go into making computers and other electronic devices outsourcing makes sense. In December of 2009, HP set up a $ 1 billion investment plan involving setting up outsourcing centers in India to compete with IBM and Dell because both of those companies were increasing outsourcing in low cost areas such as India. More than 90% of technology productions in low cost areas are located in India because of a growing population of English-speaking computer engineers and India’s desire to gain more outsourcing vendors to join the global market. India has not only a large amount of English speaking engineers but also an abundance of English speaking technical support which is why when someone in the United States needs assistance with their computer, they call the company and get linked with a the support employee in India.
This September, Apple came under scrutiny by environmental activists in China because of some of their supposed supplier plants there. An activist group claims they found polluted canals leading from what the group believes in an Apple plant. Apple does not identify all of their suppliers, which is why they were under questioning. Apple never claimed that specific factory as being associated with them but they did issue an annual report that, this year, reported that Apple identified and corrected 80 facilities that were not storing or handling hazardous waste properly and 41 that were not recycling or disposing of hazardous wastes properly.Outsourcing is a good idea for computer hardware companies to utilize but there are issues that can arise and things that companies should be sure to watch out for.
sources: 1.http://online.wsj.com/article/SB10001424053111903895904576542273644200108.html?KEYWORDS=apple+outsourcing
2.http://online.wsj.com/article/SB10001424052748703296604576005151105178710.html
3. http://www.businessweek.com/technology/content/jan2009/tc20090115_770577.htm
Whilst outsourcing an pose many benefits for a company, it can also prove to be challenging in dealing with CSR and can face dilemms due to outrage caused by activists or special interest groups. How strong an impact does this have on the organisations brand image and reputation?
ReplyDeleteThe unfortunate truth is that during current hard economic times outsourcing is an inexpensive alternative. It almost presents a double edged sword. Yes, it may negatively effect CSR. However, it can also be the reason the company can expand
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