Part 1 unit 1. Outsourcing on the increase

1. BEFORE LISTENING

1. Practice the pronunciation of the following words taken from the text which you are going to listen.

Financial firms, to embark, overseas, an accounting company, Deloitte Touche Tohmatsu, reliance, outsourcing, offshoring, low-cost centers, to slash, major, giant, to estimate, currently, to capture, potential, mistakenly, strategy, to experience, sharp, to reiterate, straightforward, tactic, fatigue, initial, novelty, tour of duty, institutions, half-hearted, to be exposed to, clear, to dabble, to be committed.

2. Give Russian equivalents to the following English words and word combinations.

Worldwide, to be set to embark, a five-fold increase, overseas, an accounting company, to increase reliance on smth, low-cost centers, to slash staffing costs, global headcount, to shift; financial services jobs in IT, HR and call centers; the tripling of personnel cost savings, to estimate, currently, to capture, potential cost savings, a short-term strategy, a sharp drop-off, to reiterate, a straightforward cost savings tactic, to experience ‘offshore fatigue’, an initial novelty, to wear off, original operational managers, to return from their ‘tour of duty’, to stay for the long course, to make a half-hearted attempt at smth, to be exposed to smth, to enjoy only some of the benefits, to dabble, to be committed.

2. WHILE LISTENING

3. Listen to the text “Outsourcing on the increase” twice. First time make notes about the numbers, geographical, proper or personal names which you might hear. When you are listening to the text for the second time, try to catch the events and the order in which they are spoken about.

4. Agree or disagree to the following statements.

1. There will be a five-fold increase in outsourcing use by financial firms.

2. Some companies will see 70 percent of their headcount offshored.

3. Two billion jobs will be created worldwide.

4. Outsourcing could be used to quadruple savings in staffing costs.

5. Outsourcing is mistakenly being seen as a short-term strategy.

6. Many company executives are experiencing “offshore fatigue”.

7. An accounting executive recommends playing golf on a long course.

8. The executive advised firms not to dabble or be half-hearted.

5. Fill in the gaps using the following words.

Dabble, mistakenly, headcount, reiterated, tripling, capturing, half-hearted, drop-off, reliance, novelty, to embark on.

Outsourcing on the increase

Financial firms worldwide are set ­­_____ _____ _____ a five-fold increase in the number of jobs moved overseas, according to a new report from the accounting company Deloitte Touche Tohmatsu. This increased _____ on outsourcing, or offshoring, to low-cost centers worldwide will help slash staffing costs for the major international players. Some companies will see up to seven percent of their global _____ shifted to offshore bases. This means two million financial services jobs in IT, HR and call centers will be based offshore by 2010. The good news for investors is the _____ of personnel cost savings to $16 billion. The accounting giant estimates that many financial firms are currently_____ less than a third of the potential cost savings offered by outsourcing.

Deloitte says outsourcing has generally and _____ been regarded as a short-term strategy, with many companies experiencing a sharp _____ in cost savings after several years. The report _____ that: “Offshoring is not a straightforward cost savings tactic. Many organizations are beginning to experience ‘offshore fatigue’, as the initial _____ wears off and the original operational managers return from their ‘tour of duty’”. The advice from Deloitte director Chris Gentle was to stay for the long course. He said: “Financial institutions that make a _____ attempt at offshoring are exposed to all of the risk, while enjoying only some of the benefits. The message is clear: Don’t _____ - stay home if you’re not committed”.

3. AFTER LISTENING

6. Answer the following questions.

1. What is outsourcing?

2. Did you guess what the text was going to be about when you read the headline of the text?

3. What do you think of outsourcing?

4. Is there any difference between offshoring and outsourcing?

5. Who are the winners and losers when a company opts for outsourcing?

6. Do you think quality is slashed along with staffing costs?

7. How would you feel if you lost your job because of offshoring?

8. Do you think now would be a good time to buy shares in international financial firms?

9. What do you think are the causes and symptoms of “offshore fatigue”?

10. “Tour of duty” is an army term to describe soldiers fighting abroad. Is it a good phrase to use in this article?

7. Match the following synonyms from the text.

   to embark reliance to slash to estimate to capture to reiterate novelty tour of duty half-hearted 10)to dabble

   lukewarm dependence to secure to post to repeat dilly-dally to cut to reckon newness to commence

8. Match the following phrases from the text (sometimes more than one combination is possible).

   a five-fold increase in the centers worldwide will help slash their global headcount the tripling of personnel cost capturing less than a third mistakenly been regarded experiencing a sharp experience ‘offshore fatigue’ tour 10)make a half-hearted

   shifted to offshore bases of duty as a short-term strategy staffing costs drop-off in cost savings attempt at offshoring of the potential cost savings number of jobs moved overseas savings to $16 billion as the initial novelty wears off

9. Complete the following sentence starters. After you finish, change partners and discuss what you wrote.

Outsourcing is _____________________________________________________.

Outsourcing can never _______________________________________________.

The biggest problem with outsourcing is _________________________________.

Outsourcing is wonderful _____________________________________________.

Outsourcing means the world __________________________________________.

Outsourcing is dangerous if ___________________________________________.

Outsourcing is essential ______________________________________________.

10. Write down all words you associate with the word “savings”. Share your words with your partner(s) and talk about them. Together, put the words into different categories.

11. You are the CEO of a major international financial company. You know you can save millions of dollars in staff costs by outsourcing many of the jobs done domestically. You must choose one of the countries below as your outsourcing base. With your partner(s), discuss the advantages, disadvantages and potential client reaction of these countries being used.

COUNTRY	ADVANTAGES	DISADVANTAGES	CLIENT REACTION
India
Singapore
Zimbabwe
Iraq
Bulgaria
Tahiti

• Choose which of the countries is best based on what you discussed.

• Change partners and show each other what you previously discussed and decided. Provide feedback on each other’s ideas and choices.

• In groups, compromise and decide on just one base.

• Make presentations to other groups promoting your choice of country.

• Alternatively, take a different country each and argue for why that country would best serve your needs as an outsourcing base.

12. Choose the task and be ready to make a presentation, then share your findings with your groupmates: