Monday, October 22, 2007
Outsourcing: A Sensible Scope or a Hopeless Hope
Since its inception in business world in 1983, outsourcing has taken a rapid leap like never before in recent years. With an ever-increasing interest of lowering firm costs, redirecting or conserving energy or in better words, making more efficient use of worldwide brain, technology, capital and resources, Outsourcing has become both easy and effective choice of organizations.
In today’s globalization, outsourcing has become accessible nationally as well as internationally. If we talk about its benefits, then this space might seem little to me. Offshore outsourcing has enabled many organizations abroad to exploit the lesser value than par foreign currencies and take huge benefits. It has boosted the competition as well as the economy. Because of lower costs, quality tends to reduce slightly but outputs always go on increasing. Additionally, outsourcing has proved highly beneficial to developing countries, like India, China and Philippines as companies all over the world outsource to them for network management and software development services. These countries have a trained manpower equipped with sound knowledge of modern technologies. Outsourcing, no doubt, has become a powerful business tool setting an economical approach by purchasing intellectual capital, focusing on core competencies and lowering costs.
Well, nothing is made perfect ever. Everything has got its pros and cons. Outsourcing can’t be spared. Outsourcing has been criticized from both administrative and consumer side raising a question on the quality of the outsourced services or product. Outsourcing was criticized in very tough words by Democratic U.S. presidential candidate John Kerry in 2004. In U.S., Outsourcing always has been retorted negatively with logic of fall in economy by “outsourcing jobs overseas.” Economist Thomas Sowell from the University of Chicago said (http://capmag.com/article.asp?ID=3565), “anything that increases economic efficiency--whether by outsourcing or a hundred other things--is likely to cost somebody's job. The automobile cost the jobs of people who took care of horses or made saddles, carriages, and horseshoes.”
Swinging in pros and cons, Outsourcing has still its demand ever-increasing. Recent polls has indicated that over 80% of all U.S. companies have thought of shifting U.S. IT jobs overseas, while 40% of all U.S. organizations have ended up outsourcing IT services from non-U.S.-based service providers. Outsourcing brings more experienced, targeted and focused outputs in addition to cost benefits. Thus, IT services, like programming, application and software migration to foreign countries frees up in-house staff to work on more strategic developments.
Well, the broader view of outsourcing benefits should be harmonized by broader, more flexible and more constantly monitored planning with outsourcers. The major studies and surveys on outsourcing have revealed that it has powered the financial position of the companies in ever-changing market trends and increasing competition.
The author is an expert on internet business and online shopping related issues. To have a peek into her business and technology oriented articles visit the website http://www.infysolutions.com
Article Source: http://EzineArticles.com/?expert=Anne_Catherine
Since its inception in business world in 1983, outsourcing has taken a rapid leap like never before in recent years. With an ever-increasing interest of lowering firm costs, redirecting or conserving energy or in better words, making more efficient use of worldwide brain, technology, capital and resources, Outsourcing has become both easy and effective choice of organizations.
In today’s globalization, outsourcing has become accessible nationally as well as internationally. If we talk about its benefits, then this space might seem little to me. Offshore outsourcing has enabled many organizations abroad to exploit the lesser value than par foreign currencies and take huge benefits. It has boosted the competition as well as the economy. Because of lower costs, quality tends to reduce slightly but outputs always go on increasing. Additionally, outsourcing has proved highly beneficial to developing countries, like India, China and Philippines as companies all over the world outsource to them for network management and software development services. These countries have a trained manpower equipped with sound knowledge of modern technologies. Outsourcing, no doubt, has become a powerful business tool setting an economical approach by purchasing intellectual capital, focusing on core competencies and lowering costs.
Well, nothing is made perfect ever. Everything has got its pros and cons. Outsourcing can’t be spared. Outsourcing has been criticized from both administrative and consumer side raising a question on the quality of the outsourced services or product. Outsourcing was criticized in very tough words by Democratic U.S. presidential candidate John Kerry in 2004. In U.S., Outsourcing always has been retorted negatively with logic of fall in economy by “outsourcing jobs overseas.” Economist Thomas Sowell from the University of Chicago said (http://capmag.com/article.asp?ID=3565), “anything that increases economic efficiency--whether by outsourcing or a hundred other things--is likely to cost somebody's job. The automobile cost the jobs of people who took care of horses or made saddles, carriages, and horseshoes.”
Swinging in pros and cons, Outsourcing has still its demand ever-increasing. Recent polls has indicated that over 80% of all U.S. companies have thought of shifting U.S. IT jobs overseas, while 40% of all U.S. organizations have ended up outsourcing IT services from non-U.S.-based service providers. Outsourcing brings more experienced, targeted and focused outputs in addition to cost benefits. Thus, IT services, like programming, application and software migration to foreign countries frees up in-house staff to work on more strategic developments.
Well, the broader view of outsourcing benefits should be harmonized by broader, more flexible and more constantly monitored planning with outsourcers. The major studies and surveys on outsourcing have revealed that it has powered the financial position of the companies in ever-changing market trends and increasing competition.
The author is an expert on internet business and online shopping related issues. To have a peek into her business and technology oriented articles visit the website http://www.infysolutions.com
Article Source: http://EzineArticles.com/?expert=Anne_Catherine
Labels: BPO, BPO Services, Knowledge Process Outsourcing, KPO, KPO Services
