THE GEOGRAPHY OF THE WORLD ECONOMY

LECTURER: TRUONG THI KIM CHUYEN

Service: definitions1. The general way2. Sectors of service3. Subjects of service4. Characteristics of service

Outsourcing: 1. Definitions2. Viet Nam outsourcing3. Benefits and Drawbacks

Case study- Medical outsourcing

The process or transaction of the production and consumption of intangible inputs and outputs

• Financial, insurance and real estate (FIRE)

• Business service • Transportation and

communications• Wholesale and retail trade• Entertainment, hotels and

motels- part of tourism• Public service • Nonprofit services

Service is a set of industries or series of occupations change a person, manufactured or information physically, spatially or temporally.

• Intangibility• Perishability• Inseparability• Simultaneity• Variability

• Outsourcing: - an effective cost-saving strategy. - produce parts or products abroad for

domestic sale. E.g : Dell, book – keeping, Viet Nam Software… - transfer technology and capital from the rich

country to developing country.

• Forms: information technology outsourcing (ITO), business process outsourcing (BPO), human resources outsourcing (HRO)…….

• Purpose: + Creates and expands new markets, + Effectively and efficiently promotes global

citizenship, + Recognizes the benefits of a global economy, + Enhances technological creativity and diversity, + Makes good social, financial, and economic sense.

• Quickly emerging as a software outsourcing destination.

• Ranks 20th among the top nations.• Perfect fit for companies looking for a

technological advance

• Outsourcing-the practice of using outside firms to handle work normally performed within a company

External outsourcing

Internal outsourcing

BENEFITSControl capital costsIncrease efficiencyReduce labor costStart new project quicklyFocus on your core businessReduce risk

DRAWBACKSLost of Managerial controlHidden CostsThreat to security and confidentialityQuality problem

Medical outsourcing Defined as off-shoring of health- related needs to different

country for the purpose of obtaining cost- effective service. Include off-shoring of medical service as well as medical

tourism

Countries: India, Australia, Mexico, Singapore, Brazil

India particularly favor Clinical service: oncology, orthopedic

services, molecular imaging and disease management

Medical outsourcing A planned foreign travel to primarily obtain high

quality, cost effective, non- emergency medical treatment that include vacation element

The reasons to choose medical tourism: Low cost Seek medical care oversea because of immediate

availability of procedure and sometimes the unavailability of certain procedures

Medical oursorcing- Overseas surgery

Pros and cons of medical outsourcing

ProsCost effectiveLeverage industry

experienceLeverage time zone

differential of off-shoring location

High quality and accurate medical record

Reduce infrastructure investment

ConsTardiness in support for medical tourism amongst third party payer

Crowd out poorer local patients

Raise domestic prices and accentuate inequalities in access to care

Suffer from lack of customer focus

http://www.2ascribe.com/articles/outsourcing-medical-transcription/the-benefits-of-outsourcing-your-medical-transcription http://www.globalpost.com/dispatch/india/090724/medical-outsourcing-indiahttp://en.wikipedia.org/wiki/Outsourcinghttp://www.wisegeek.com/what-is-outsourcing.htmhttp://www.unitech.vn/http://en.wikipedia.org/wiki/Medical_tourismhttp://computerjobs.vn/huong-nghiep/viet-nam-diem-den-outsourcing-moi.htmhttp://www.businessweek.com/magazine/content/06_05/b3969401.htmhttp://www.healthbase.com/resources/medical-tourism/medical-tourism-information/medical-outsourcing.html