California State University, San Bernardino CSUSB ScholarWorks Inland Empire Business Journal John M. Pfau Library 1-2004 January 2004 Inland Empire Business Journal Follow this and additional works at: http://scholarworks.lib.csusb.edu/iebusinessjournal Part of the Business Commons Recommended Citation Inland Empire Business Journal, "January 2004" (2004). Inland Empire Business Journal. Paper 182. http://scholarworks.lib.csusb.edu/iebusinessjournal/182 This Article is brought to you for free and open access by the John M. Pfau Library at CSUSB ScholarWorks. It has been accepted for inclusion in Inland Empire Business Journal by an authorized administrator of CSUSB ScholarWorks. For more information, please contact [email protected]. $2.00 Outsourcing and Offshoring Could either practice affect your job? by Richard Leatherman First, let's clanfy outsourcmg and offshonng by gomg over the defim­ tions of each. Outsourcing occurs when a company has work done by an external domestic source. Off­ shoring occurs when a company has the work done b] an overseas source. Clearly, outsourcing and off.shoring are related but based upon the desti­ nation of the work, they can be qmte different m their practice and their continued Oil page 3 NEWPORT BEACH CT Realty Corp. of .Vewport Beach has acqwred the Corona Village Apartments for $7.8 millwn }rom Corona Apartment, LLC and ifimmide Corona Apartments, LLC, both ofNe~•port Beach. Corona Village is an 83-unit apartment communay located at 901 S. Smith St. in Corona. CT Realty plans to invest near~r $1 million in exterior renovations and apartment unit improvements to upgrade the property Restoring and Improving --------------------AT DEADLINE SEW BlJSil\'ESSES - Instead of Replacing - page 45 to 46 Central Park CALENDAR Community a Charming Established Former Chief of Center Community in Corona Staff Pressured Underway Location is key, but atmosphere is also important by Outgoing Groundbreakmg cere- Supervisor to momes were held recently for cr Realty Corp. has acqwred the one of the important advantages the new $17.6 mtllion City of Corona Village Apartments from Corona Village apartments offer rest­ Resign or Take Rancho Cucamonga Central Corona Apartment LLC and Warm­ dents is quick access to the 91 Free­ Unpaid Leave Park Community Center. May­ side-Corona Apartments, LLC. Coro­ way. But that is not the only plus. or William J. Alexander was na Village is an 83-unit apartment "The property is ideal for com­ by Georgine Loveland joined by the Rancho Cucamon­ community. The idea was not to de­ muters but also offers an atmosphere ga City Council, staff, design molish, for a change, but to improve not found in nearby developments, Martine Valdez served as chief of and construction teams and lo- and protect a popular community. Ac­ due to its architecture and centralized staff for outgomg San Bernardino cording to Raymond A. Polvenni, vice continued on page 37 president/multi-family for cr Realty, continued on page 7 continued on page 9 SURE-HIRE SOLUTIONS AT YOUR FINGERTIPS (800) 564-5644 • www.appleone.com ~ • Temporary Staffing • Full-Time Placement • Temporary-To-Hire iiPPI.I!dlll! JANUA RY 2004 JA NUA RY 2004 BUS INESS JOUR NA L • PAGE 3 BLSINESS JOURNAL • PAGE 2 Outsourcing and Offshoring has saved mswance company Mctllfc strategic tasks isn't a good way to usc )0 percent 111 costs since 200 I That's resources. Companies are ru;kmg Could either practice affect your job? when It took over runnmg the compa­ themselves: \\~'hat is it costing us to continued jrom page I heightened concentratiOn on core com­ ny's IT systems. handling scrnccs continue to manage this process in­ petencies. MoreoYer, bll"ilOC:-;.ses some­ rangmg from agent-broker transac­ housc0 Well beyond dollars, there's con:;cqucncc.s. times send certam fw1ct1ons aero~' the tiOns to human resources admmJstra­ the cost of focus and of mamtainmg Where is the Inland Entpire Companies as well as consumers street as well as across the InternatiOn­ Mn. mcludmg bene fib and payroll-re­ limited resources versus obtaining should fully understand the entiCe­ al Date Line. Outsourcmg work func­ lated expenses." In another example, greater access to talent. expertise, ments and the differences between tions can act as a streamhmng process " lnd1a-based call-center employees sofhvare, hardware and services.'' Econonty Headed in 2004? outsourcing and ofTshoring. These that allows employers to focus their practices affect pricmg levels as well workers on differentiatmg functions The Top 10 Reasons Companies Outsource as the creation or elimination of thou­ and highly profitable actiVIties. You'll hear about the Inland Empire's growth areas auu """u~ ou• u .. ·~·~ ... ···--~-ries sands of jObs. U.S. public furor and Improves company focus 55% including media entertainment, real estate, health care, the financial markets, Some outsourcing creates local lcg1slative stonn clouds arc building jobs and not all offshonng means that Reduces and controls operating costs 54% interest rates, retail sales and the job market. over both blue- and white-collar do­ JObs are bcmg transported overseas or Frees resources for other purposes mestic jOb losses caused by ofT­ that people arc bemg exploited. Now Enables access to \•·:orld-class capabilities 36% You'll also haH the opportunity to question the experts and to network with top shonng. At the same tunc, thousands referred to as the most significant Obtains resources not available mtema ll y Inland Empire executives. of L S. busmcsscs arc becoming management development of the last stronger by concentrating resources on decade. outsourcing is ba:-.ed on this Accelerates rccngmeering benefits 20% \\hat they do best and outsourcmg princ1ple: If it 1sn't your company's Reduces time to market non-core comp..:tency tas!..s both do­ REAL ESTATE core competency. then take the acti\­ Shares risk THE OUTLOOK FOR INLAND mestically and abroad. ity or process and contract it out. ei­ Helps take advantage of oflshore opportumucs RES!DfNTIAL NEW HOME GROWTH ther locally or offshore. In adduion to EMPIRE CITIES, SAN BERNARDINO How did it all begin'? Helps manage difficult or out of control functions lowering costs. outsourcmg is a tool COMMLRCIAL OHICE Ol TLOOK Outsourcing started as a way for COUNTY, RIVERSIDE COUNTY AND that allows many companies to nn­ businesses to reduce head count and Note lllC pcn:ent.'lgt."S tkl not add up to I ()()0,., ~TrH:t: n..-:-.·pondt.'tlL'i sdt..-"Ctcd more than one an'M-tt. THE STATE OF CALIFORNIA. INDUSTRIAL AND DISTRIBUTION PROJECTIONS prove the1r products and scn·1ccs, and operating costs by paying an outSide Source It:~ "vo Longa !how th(' .\loner. Outsourcmg Institute. Based on o;urvey data col~ enhance the1r flexibility. Wh1le out­ source to pcrfonn one of its fi.mctions. h.."tOO between January :!001 and June :!002 from 1.110 outsourcmg buyers sourcmg presents many attractl\'e ben­ Many compames used outsourcmg as efits to employers, 1t \ the loss of do­ a simple shorHenn solution to an im­ mestic jobs that is the center of the cam between $2 and S4 an hour; a HEALTHCARE INSURANCE 2004 mediate financial problem. When the \\hat functions are companies offshonng controversy. In an article. U.S.-based employee, dependmg on North American hce Trade Agree­ outsourcing? Cra~· Like a Fox. Out.wurcing i(mr expenence. could cost five times that' ment ( 'AFTA) was hotly debated m Manufacturi ng is no longer the TOURISM 2004 Sales Force published by the Out­ Ramesh Wadhwam. preSident of, the late '80s 'md '90s. outsourcing be­ mam focus of outsourcing. E\crythmg sourcing lnsutute. author Bruce Mcm­ U.S.-based SAl Systems Internati on­ came more of a poliucal football than from software development and doep says. "As more and more com­ al, Inc .. techn ology consultmg com­ WORKERS COMP "WHATS NEW" a developmg busmess strategy. The he lpdesk support to fom1 proce"mg. panies realize the Significant benefit< pany ai mmg to meet the IT needs of med1a was full of stones about US telemarketing. training. payroll pro­ and resulting profitability of out­ businesses in the U.S. established two productiOn factories movmg to Mexi­ cessing and product docum entatiO n sourcmg, the size of the outsourcing subs1d1aries in Pune. lnd1a. He says. co to take ad,antage of cheaper labor needs is bemg outsourccd se m ce market has exploded." "Openmg these subSidia ri es in India 2004 Economic Forecast Conference and exploit1vc workers' nghts laws. In That helps to explain why thou­ all ows us to offer high qua li ty service Ho"' can companies succeed 1998, U.S. General Motors (GM) Date: March 19, 2004 sands of workers in a growing number at great bargams. Compani e.." can fann nhen they outsource? workers th reatened a nat1onw1de of industries have good reason to feel out work to IT houses in Ind ia rang­ According to Peter Nc\\cll, C ~. O Time: 11:30 a.m. wa lko ut because of offshore out­ more and more uncomfortable. "By mg fi'o m $180 - $300 per profcss1011 of WcbConverse. Inc .. "Ad,·ances m Venae: Doable Tree Hotel 212 N. Vineyard, Ontario, CA 91764 sourcing. Cclebntics such as Kathy 2015, more than 3.3 million L. S al day compared to $6(Xl - S4.000 per technology. access to global resources. Lee G1fford and M1chael Jordan each r----------~------------------ : --~----------~-------------- service-industry JObs and S 136 b1ll1on day in the U.S. \'/'hat's more, the t1mc and refi ned busmess pract1 ces hU\e re­ had well-publicized episodes regard­ Name: _______________________________________________________ m wages will have moved offshore," d1fference between the U. S. and lnd1a shaped the way soph1st1cated sercicc mg the overseas producti on of thei r Company: __________________________________________________ SAVE accordmg to a recent study by For­ is 1dcal for mamtenancc and support pro\'Jders work \\ ith their customers.