Business Outsourcing Global & World Value

by : Anne Catherine

Outsourcing arrived on the business scene with a big bang in the year 1983 and is an industry that is booming ever since. Outsourcing has come to be the success mantra of today considering the level of competition and the rapid growth and development. Outsourcing offers an opportunity to not only make use of the available resources from different parts of the world but also provide cost effective services to the user. Outsourcing has come to be an important and also economically viable business option for several businesses all over the world.

With the development in technology, outsourcing to service providers not only within the country but also outside has become not only possible but convenient. Outsourcing has opened up a whole new world of business opportunities. Companies are now able to make use of the difference in the value of the individual foreign currencies and make the most of the prevailing circumstances. Outsourcing has come as a big boon providing a very lucrative business opportunity to developing nations like China and India as they have discovered a very profitable business opportunity. Developing nations can make use of the expertise of their highly qualified and trained professionals and can provide the services at a fraction of the cost as compared to that charged by American and European companies. This is what makes developing nations very attractive for the outsourcing business.

Outsourcing has a whole lot of merits but even the moon is known to have black spots, so nothing is spared. Outsourcing has its own set of drawbacks regarding matters like quality. Quality is one issue that experts point out as a major shortcoming of outsourcing. With outsourcing that too in bulk you really cannot ensure maintenance of high quality standards. Outsourcing is also seen as a major drain of foreign exchange for the country which has outsourced work and would result in cutting down the number of job opportunities for the people of that particular country.

In spite of the drawbacks listed, the outsourcing industry has been growing by leaps and bounds. The latest reports have gone to show that more than 80% of US Companies have decided to shift US IT related jobs abroad and 40% of US companies are outsourcing IT related jobs like , , from service providers that are non US based companies. With outsourcing work related to the IT sector that involves highly technical services like programming, the company can concentrate on day to day activities that can lead to expansion and growth of the business.

Outsourcing, considering the larger picture is seen to be advantageous to both the parties and the company that has outsourced work only stands to gain by making the best of the available resources and providing service that meets the deadline and is also cost effective.