Offshore Outsourcing and its futureMonday, January 16, 2006
Offshore Outsourcing, as we all know is the process that is adopted by almost all the business entrepreneurs and has made it a trend of the business in the current business market. Now even for a smaller portion of any business application many companies prefer the way of outsourcing. But will the market remain the same as it is in the future? Will the process be similar? Let us discuss and find out the future of the process of Offshore Outsourcing.
As we all know that Offshore Outsourcing is the process that facilitates the ability to get the grip on the skilled and talented overseas staff at a really very lower labor cost and with lots of benefits associated with the whole process. This process of offshoring is now utilized for different business aspects like accounting, IT projects, legal services, health care, investment and consultancy, and many more process of the business. The concept of Offshore Outsourcing is not the recent one but it is almost a couple of centuries old. Now a day almost all the countries and all big brand names in the market are attached to this process by one or the other way. This process of offshoring is done mainly to gain the advantage of cheaper labor costs. Many MNCs in developing countries have set up their subsidiaries in countries like India, Canada, Africa, Russia, and China. India and China are considered to be the most demanded spots for the outsourcing process in today’s competitive world. In the past decade companies of the U.S. alone had invested more than $7 billion in their subsidiaries in countries like India, and had gained the savings of over $26 billion. India is again considered to be the hottest spot for outsourcing. Telecom companies from Australia are also investing in India and almost gaining the savings of almost $75 billion by the process of offshoring. And one more thing is also there as far as India is concerned that India is considered no. 1 in IT Outsourcing. So India is most demanding country for the process of Offshore Outsourcing.
We just saw the advantages associated with the process of Offshore Outsourcing and how the countries are heavily involved in this process to gain the maximum out of it. With this one more thing is true that in the country like U.S. the situation is now slowly heating up. At present the companies from the U.S. are generating the controversy, and their controversy is regarding the jobs in their own country. They believe that more and more outsourcing is putting the jobs at hazard in already tense economy in their country, and they are right too. With lots of benefits, the process of offshoring also brings the unemployment which is really an area to be considered in well manner. This also indicates that the process of Offshore Outsourcing is not just the process full of advantages but it also has some disadvantages with it.
The process of Offshore Outsourcing is booming up day by day and more and more countries are now entering in to this process. This might indicate the popularity and bright future ahead of this process but along with this the fact like increment in unemployment is also the other side of the story of Offshore Outsourcing. It may create some problems in the future.