SPEAKING OFFSHORE ACTIVITIES

1. Join the two halves of the sentences below to discover alternative

definitions of the term offshoring:
1. the practice of sending work to be
done
a. lower labour costs or more favourable
economic conditions
2. opening companies abroad in a
country
b. in another country in order to save
money
3. moving a companys operations to
another country for reasons such as
c. for a service from any foreign source
4. replacing a service formerly produced
internally
d. where they pay less tax than in the
home country
2. Look at the pictres below and identif! the activities that can be off"
shored:
Picture A Picture B Picture C Picture D
Picture E Picture F Picture G Picture H
3. #t the activities in e$ercise 2 above into the right categor!:



4. %orm 4 grops of stdents. &ach grop reads the card given b! the
teacher abot newl! emerging economies and takes notes on the
following aspects: acron!m' member contries' main characteristics.
(. )hoose a grop representative to make a 2 minte presentation of
the materials read. *nswer an! +estions !or colleages ma! ask.
READING ATTRACTIVE OFFSHORING DESTINATIONS
,. %orm pairs and read the te$ts below as follows: one stdent reads
-e$t * and answers the +estions below it' the other stdent reads
-e$ts . and ) and answers the +estions below them:
TEXT A: Offshoring Opportunitis A!i" E#ono!i# Tur$u%n#
The current global services landscape is marked by antagonistic trends. On
the one hand, firms are responding to intnsif&ing cost-cutting imperatives by
moving operations offshore. On the other hand, politicians are using global
services offshoring as an easy scapegoat for current economic woes and high
unemployment levels in their home countries, feeding resentment against
g%o$'%i(" firms and their foreign host countries. Although signs of a slowdown in
the growth of global services are evident in this environment, don't expect
offshoring to end. n fact, the global services industry's full potential is ready to be
tapped.
The latest A.T. !earney "lobal #ervices $ocation ndex% shows that the
world of services offshoring has changed dramatically since the first report
pu$%ish" by the same global management #onsu%ting firm in &''(. )hat was
then an !rging phenomenon that seemed to have great potential is now a natural
element of corporate services supply chains. The industry has grown significantly
and in many cases exceeded expectations from the early days. The part of the value
chain that can be performed offshore has increased in value-add and complexity as
Production
offshoring
Services
offshoring
we continue to see new types of services being handled remotely and across
borders. At the same time, the geography of offshore delivery has expanded to
include a large number of countries sp#i'%i(ing in different parts of the service-
production ecosystem.
Adapted from www.atkearney.com
1. Why do companies move their operations offshore
!. What is global services offshoring blamed for
". #s the future of offshoring predicted to be bright or bleak
$. What has happened in the offshoring industry over the last decade
%indicate " aspects&
TEXT ): Ho* "o #o!p'nis #hoos offshoring "stin'tions+
The choice of offshoring destination is often made according to cultural
concerns.
*apanese companies are starting to outsource to +hina, where large
numbers of *apanese speakers can be found. "erman companies tend to outsource
to ,oland and -omania, where proficiency in "erman is common. .rench
companies outsource to /orth Africa for similar reasons.
.or Australian T companies, ndonesia is one of the ma0or choices of
offshoring destination, due to1 nearshore location, common time 2one and ade3uate
T work force.
The +entral America .ree Trade Agreement 4+A.TA5 has
made nearshoring 4i.e. transferring business to a nearby country5 more attractive
between the +entral American countries of +osta -ica, 6l #alvador, "uatemala,
7onduras, /icaragua, and the 8ominican -epublic and the 9#.
Adapted from Wikipedia.org
'. What determines companies choice of offshoring destination
(. Whay do )apanese companies offshore to *hina
+. Where do ,ustralian companies offshore and why %indicate " reasons&
-. What is nearshoring
TEXT C: Th ,- top IT offshoring %o#'tions
ndia is still king and +hina is its main competitor as a destination for
offshore T services, but five destinations have made their first appearance in
"artner's latest list of Top (' Offshore service destinations1 :angladesh, :ulgaria,
+olombia, ;auritius and ,eru have for the first time made it into the "artner top
(' with ,anama, #ri $anka and Turkey returning.
<n the past =& months, "artner has seen considerable efforts from many
countries to consolidate or grow their positions as %'"ing locations for offshore
services. E!rging nations have placed significant emphasis on T and business
process services providing a vehicle for their economic growth, as many potential
tr'"ing partners are moving from recession to tentative growth,< said "artner.
Adapted from ComputerWeekly.com
.. Which are the best two offshoring destinations in the #/ industry
10. Which are the five newest countries among the /op "0 1ffshore service
destinations
11. Why do countries struggle to become attractive offshoring locations
/. *fter answering the +estions above' e$change information on the
te$ts read with !or pair member.

.ANG/AGE NOTES
0. -he te$ts above refer to some closel! related notions. 1ead the
e$planations below and se the right form of the words to fill in the
following statements:
nearshore 2ad3ective4
at a short distance from the shore
nearshoring 2non4
moving a compan!s operations in a nearb! contr!' often
sharing a border with its contr!
offshore %ad2ective&
1. in or under the sea3 close to the coast 4 anton!m5 inshore3
onshore
!. outside the country3 abroad 4 anton!m5 onshore
offshoring %noun& 4 anton!m5 inshoring3 reshoring
moving a companys operations abroad3 in a country with lower tax3
labour costs etc.
outsource %verb&
to employ workers from outside the company to perform a certain
2ob 4 anton!m5 insource
outsourcing %noun& 4 anton!m5 insourcing

reshoring %noun& 4 anton!m5 offshoring
bringing a companys operations from abroad back into the home
country
1. /ransportation costs are lower if we choose our
manufacturing processes to 6ulgaria3 instead of offshoring to *hina.
!. Small family7owned businesses usually their accounting
and 2uridical services.
". oil production is significantly different from offshore
production.
$. /he new manager has decided to production of its
electronic components back to 8S from *hina.
'. /he recruitment agency will be cutting 100 #/ 2obs in 89 to expand
.
(. :rom the language barrier point of view3 call centers to
rural areas in ,merica is preferable to offshoring to South7;ast ,sia.
+. diving has been restricted to avoid the irreversible
destruction of the coral habitat.
-. <uring economic crises3 a large number of companies are considering
to tax havens.
.. =ore and more companies prefer to outsourcing3 to
maintain control over their operations.
10. <uring bad weather conditions3 tourists are advised to refrain from
swimming.
5. #t the words ne$t to the preposition the! select' then add e$tra
words in each categor!:
according action afraid blame choice
cost
destination due emphasis increase information
permission
proficiency proud reason resentment respond
restrictions
scapegoat speciali>e tax tend use
violence
against

for

in

of

on

to

16. 7ake sentences with the following words' pa!ing attention to the
preposition the! select:
1. attempt %noun&5

!. number %noun&5

". influence %noun&5

$. prepare %verb&5

'. successful %ad2ective&5

GRA00AR AD1ECTIVES ENDING IN ING OR 2ED

11. )hoose the right version2s4 to complete the rles below:
1le 1: ,d2ectives ending in 7#?@
a& describe a process or state that causes emotion %e.g. boring&
b& describe how people feel %e.g. bored&
c& describe a process or state that lasts for a while %e.g. long-
lasting&
1le 2: ,d2ectives ending in 7;<
a& describe how people feel %e.g. bored&
b& describe the result of an action %e.g. broken&
c& describe a process or state that causes emotion %e.g. boring&
12. )omplete the phrase below with the right ad3ectival form of the
verbs given:
1. /he company has a subscription for #/,9 =aga>ine3 by
the #nternational ,ssociation of #nformation /echnology ,sset
=anagers. #8.L9:;
!. We are making a study on the #/ vendors on the ;uropean
market5 history3 products and services3 financial data etc. L&*<
". , firm has been invited to review the companys financial
statements. )=>:8L-
$. ,ll of the companys shares are held by employees or
associates. -1*<&
'. 6usinesses are under pressure to protect the environment.
9>-&>:9%?
(. /o increase employability3 graduates have to prove they have gained
skills in the field they want to work in. :#&)9*L9@&
+. economies in ,sia or Aatin ,merica have a great potential
for development3 but evince significant political3 social or financial risks.
&7&1A&
-. firms offer the same standardi>ed products to buyers from
various countries and cultures. AL=.*L9@&
.. , partner is a company or country with which you do
business regularly. -1*<&
10. :or the !7month summer internship the bank is looking for
students in accounting. :#&)9*L9@&
.ISTENING FO..O3 THE 0ONE4: TAX HAVENS
13. Listen to the e$tract and pt the following aspects in the order in
which !o hear them:
%listening material from http5BBwww.youtube.comBwatchvC/;7hw06w>D$&
* in the *ayman islands there is no income tax3 no corporate tax3
no capital gains tax
. several giant companies benefit from tax money but they operate
hundreds of subsidiaries in tax havens
) a tax investigator says that the 8S /reasury <epartment should
demand that bailed out banks make public details regarding their
offshore interest
< tax havens are places where companies can pay fewer taxes
& somebody working in a tax haven has been placed under witness
protection after testifying about his 2ob
14. Listen again and write down the nmbers sed to refer to the
following aspects:
1. the number of giant 8S companies present in a recent government
report about tax havens5
!. the money collected from the respective companies5
". tax havens cost 8S tax payers per year in lost revenue
$. =organ Stanley has subsidiaries in the *ayman #slands3
times the number of hotels in that area
VOCA)/.AR4 TAX CO..OCATIONS
1(. )omplete the crosswords below with members of the word famil!
of ta$:
1
2
3
4 "
1. 7 money collected by governments from people who pay taxes %noun&
!. 4 to place a tax on income3 goods3 etc. %verb&
". 4 goods3 income etc. sub2ect to tax %ad2ective&
$. 4 not sub2ect to taxation %ad2ective&
1,. 7atch the ta$ collocations below with their definitions:
1. payroll tax a. person who pays taxes
2. progressive tax b. money to be paid to the government so that one
can drive their car on the roads
3. tax avoidance c. a fixed amountB percentage that a taxpayer can
subtract from hisBher gross income to arrive at the
taxable income %e.g. allowances for home repair
expenses3 or study costs&
4. income tax d. legal minimi>ation of tax liability through financial
planning techniEues
(. tax payer e. an amount deducted from an employees salary
to compensate for benefits if heBshe loses hisBher
2ob
,. tax evasion f. a tax to be paid by companies function of the
amount of profit gained
/. corporate tax g. income tax and other deductions from an
employees salary
0. tax deduction h. goods not sub2ect to taxation
5. property tax i. category of income sub2ect to a particular tax rate
16. car tax 3. a tax imposed by governments on the
incomeBrevenues of individuals or corporations
11. flat tax k. a tax imposed by the government on real estate
12. unemployment
compensation tax
l. indirect tax on the consumption of goods and
services
13. tax bracket m. a system imposing the same income tax rate to
all taxpayers3 regardless of their income bracket
14. valued added tax n. income tax that takes a larger percentage of a
larger income and a smaller percentage of a
smaller income.
1(. tax free o. illegal attempt to minimi>e tax liability
1 2 3 4 ( , / 0 5 16 11 12 13 14 1(
1/. )hoose the right version:
1. #n many countries3 governments impose taxes on the capital
of companies.
a. income b. corporate c. property
!. 6ig companies hire accounting firms to advise them on tax
strategies.
a. avoidance b. deduction c. evasion
". With duty7free shopping3 customers buy products without paying taxes3
whereas with tax shopping3 customers buy products at a
price including taxes and may reclaim the F,/ paid in other countries.
a. deductible b. paying c. free
$. Proponents of tax rates argue that the constant rate makes
them easier to track and collect.
a. regressive b. flat c. progressive
'. Proponents of progressive tax rates argue that people in a higher income
tax should pay higher taxes than those in a lower one.
a. bracket b. haven c. money
SPEAKING REASONS TO AVOID PA4ING TAXES
10. Aet into grops of 4. <iscss the following reasons to avoid ta$es
and rank them from the least acceptable to the most acceptable:
Reasons to avoid paying taxes Acceptability
*. low Euality government services in return for taxes 1.
.. high income tax rates lead to low disposable income3
hence less items bought
2.
). high level of tax bureaucracy 3.
<. using company funds to keep the business on float3 i.e.
to avoid bankruptcy
4.
&. non7transparent allocation of public funds (.
15. %ind at least one soltion the government cold adopt to
discorage ta$ evasion' for each of the above sitations. *fterwards'
compare them with those of the other grops and those provided b!
the teacher.
TRANS.ATION
26. 1ead the &nglish te$t below and its translation into 1omanian.
9dentif! ( mistakes in the 1omanian version and nderline them:
.acing a pensioned financial future of social insecurity and
;edi4could5+are4less5 is a growing reality for today's pre-retirees and early retirees
- even for those that don't fit the profile of overindulgent boomer consumers and
have been doing their best to save and invest. ncreasingly, they face the double
whammy of <gently persuaded< early retirement or not-so-gentle off-the-payroll
offshoring of their 0obs - both of which leave them without the health insurance
they intended to rely on until becoming eligible for ;edicare.
Abridged from Investopedia.com
+onfruntarea cu un viitor financiar pensionat de insecuritate socialG >i
;edi4ar putea5 ngri0ire4mai puHin5 este un fapt tot mai ?nt@lnit printre cei care
astA2i se apropie de pensionare sau beneficia2A de pensii anticipate B chiar >i
printre cei care nu se potrivesc profilului de consumatori cheltuitori :oomer >i au
fAcut tot posibilul pentru a economisi >i a investi. 8in ce ?n ce mai mult, ace>tia se
confruntA cu douA opCiuni care ?i de2avanta0ea2A1 pensionarea anticipatA <u>or de
convins< sau externali2area locurilor lor de muncA 4deci lipsa unei slu0be >i,
implicit, a unui salariu5 - ambele opCiuni ?i lasA fArA asigurarea de sAnAtate pe care
se ba2au p@nA la a deveni eligibil pentru ;edicare.
21. 1e"write the 1omanian version' correcting the mistakes.

22. -ranslate into 1omanian:
Th !%ting north
The Arctic is warming twice as fast as the rest of the planet and the retreating ice
offers access to precious minerals and new sea lanes.
The Arctic is already a big source of minerals1 2inc in Alaska, gold in +anada, iron
in #weden and nickel in -ussia. 6xploration licenses for oil and gas are now being
issued across the region, in the 9nited #tates, +anada, "reenland, /orway and
-ussia.
On April =Dth &'=& 6xxon;obil finalised the terms of a deal with -ussiaEs
-osneft to invest up to FG'' billion in developing offshore reserves, including in
-ussiaEs Arctic !ara sea. #hortly before that, -ussiaEs president announced plans
to make it much more attractive for foreigners to invest in -ussian offshore energy
production. HOffshore fields, especially in the Arctic, are without any exaggeration
our strategic reserve for the &=st century,I he said.
Adapted from The Economist
23. -ranslate into &nglish:
Co!p'nii !u%5u!it " "#i(i' " 6trn'%i('r ' sr7i#ii%or
,erioada de cri2A economicA din ultimii trei ani a determinat companiile
din toatA 6uropa sA ?>i eficienti2e2e operaCiunile. 9n rol deosebit de important ?n
acest demers l-a avut externali2area diferitelor servicii, ca o metodA eficace de a
controla costurile.
#-a constatat cA firmele care apelea2A la externali2area serviciilor o fac ?n
cuno>tinCA de cau2A, acord@nd o atenCie deosebitA condiCiilor de livrare a serviciilor,
calitACii acestora, >i c@ntArind atent avanta0ele >i de2avanta0ele pe care
externali2area le pre2intA.
Adapted from Bursa
3RITING REASON AND CONTRAST
24. Bhen e$pressing agreement or disagreement with an ideaC a
statement' several linking words are sefl. %ill in the statements
below with a word or phrase form the bo$:
although as because due to the fact that in spite of
nevertheless on account of since unlike while
Reason
1. she missed the plane3 she had to cancel her trip abroad.
!. /he government didnt collect the intended amount of taxes the
countrys 10 largest corporations had moved their operations offshore.
". She was promoted ,rea Sales =anager her hard work.
$. /hey could not deliver the goods on time the road had been
seriously damaged by the landslide.
'. /hey werent allowed in the club they didnt have their #<s to
prove their age.
Contrast
(. # do not have a drivers license3 my brother3 who has had one
for ! years now.
+. # hadnt been there before3 # managed to find the hotel easily.
-. my colleagues have a week off3 # have to work overtime to
write a long overdue report.
.. Ie decided to invest his money in the taxi company the bad
rumours regarding its financial viability.
10. /he doctors were not optimistic about his chances of recovery.
3 he managed to recover Euickly3 surprising everyone.
2(. Aive reasons for or against one of the following statements. Brite
abot (6"06 words.
,. J/axes are the price we pay for civili>ation.K %1liver Wendell Iolmes )r.3
8S Supreme *ourt of )ustice&
6. J/he real spelling of aid is t.a.x.K %)effrey 1wens3 Iead of tax at the
1;*<3 ?ov. "03 !00-&
*. J1ffshore is a kitchen where corporate books are cooked.K %)ack 6lum3
*anadian writer&
<. J/ax havens arent 2ust about tax. /hey are about escape 4 escape from
criminal laws3 escape from creditors3 escape from tax3 escape from
prudent financial regulation 4 above all3 escape from democratic
scrutiny and accountability.K %?icholas Shaxson3 6ritish 2ournalist&
CASE ST/D4 O/TSO/RCING IT SERVICES
-ask 1. Listen to the following docmentar! on utsourcing to !ndia
and mark the statements -re or %alse:
%listening material from http5BBwww.youtube.comBwatchvCAnh/L:Ikgmw&
:tatement -re %alse
1. /he #ndian population is ".' times bigger than the
,merican one.

2. /he cost of living in #ndia is half that in the 8S.
3. People employed in #ndian call centers assume an
,merican identity while talking to customers.

4. People employed in #ndian call centers undergo training
as far as their pronunciation is concerned.

(. <espite the flourishing outsourcing industry3 the #ndians
are not so confident about their economic future.

-ask 2. Listen again and complete the collocations to discover
services that can be otsorced to 9ndia:
cartoon bank
tax collection
cards rays
reservations *,/
lost games
-ask 3. 1ead the following te$t and answer the +estions below it:
In"i'8s n* outsour#ing ri7'% Ro!'ni'+
The rising costs for 9.!. companies that provide and use ndian offshore
information technology services could drive businesses to cheaper locations, such
as 6astern 6urope, according to a new report. The latter says that -omania and
other 6astern 6uropean countries are virtually ignored by 9.!. companies but are
predominantly the first outsourcing choice for the rest of )estern 6urope.
The report claims that not only is the cost of using and providing T
services in -omania much cheaper than in ndia, but the country is also home to an
abundance of well-educated and highly skilled workers who have a better
understanding of )estern 6uropean culture than their Asian counterparts.
;oreover, the document argues that the 9nited !ingdom's use of ndia is
largely driven by historical and cultural links to the country, but companies may be
forced to look elsewhere, as skills and resources become scarcer and costs start to
rise.
There is the opportunity both for service providers to improve their
competitive edge - by ac3uiring resources and companies in -omania more
cheaply than in ndia - and for users to buy comparable levels of T service at a
much lower cost.
<Although from the business point of view, -omania is 3uite backward
compared to )estern 6urope and probably no better than the ndian and Asian
alternatives, it is arguably closer in cultural affinity. The language and education
are good enough.< one of the authors of the report said.
The report estimates that in the future -omanian revenue from 6uropean
countries will be obtained mostly from .rance, "ermany, the 9nited !ingdom and
the /etherlands.
Adapted from http://news.cnet.com/
1. Why would 89 companies decide to replace #ndia for ;astern ;urope as
offshore destination
!. ,ccording to the report3 what are the advantages of outsourcing to
Domania %indicate " aspects&
". Iow can companies benefit from outsourcing to Domania
$. Iow can clients benefit from outsourcing to Domania
'. What are the disadvantages of outsourcing to Domania %indicate 1&
(. What countries is Domania estimated to attract as far as outsourcing is
concerned
-ask 4. @et into groups of $ students. Mou represent a leading #/ service
and consulting company based in 8nited 9ingdom and !o are holding a
meeting to decide where to outsource your *ustomer ServiceB *all *entre
operations5 to #ndia or to Domania. %ollow the :teps indicated b! !or
teacher.
-ask (. %ill in the 7intes of !or meeting:
MINUTES OF THE MEETING
Name of Company/ Department:
Date: Time:
Attendees:
Chairperson:
,
,
...,
Apologies for asen!e:
"roposals:
1. India was proposed as an offshoring destination for the following reasons:
a.
b.
c.
2. Romania was proposed as an offshoring destination for the following reasons:
a.
b.
c.
Dis!#ssion: The following aspects were clarified:
a.
b.
c.
De!isions: ... was chosen as an offshoring destination.
Follow up actions:
a.
b.
c.
Ad$o#rnment of Meeting:
There being no other business, the meeting was adourned at pm.
Signat#res:
Min#tes ta%en y&
-ask ,. )ompare !or decisions with those of the other grops. 8se
the 7intes of !or meeting to help !o focs on the details.