What is Outsourcing ?
Outsourcing has been one of the major businesses that has evolved nowadays.The word outsourcing literally means "Obtaining goods or services from an outside supplier; to contract work out". One that proved put to be the best line of work for job seekers and job owners as well.
Outsourcing was not formally identified as a business strategy until 1989 (Mullin, 1996). However, most organizations were not totally self-sufficient; they outsourced those functions for which they had no competency internally.
Taken from reliable sources here are few of the list gathered by the author :
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Advantages of Outsourcing
- Reduce and control operating costs :
More of that companies which want to do all in their own way have to spend more for researching, development, marketing and launching. - Improve host company focus :
The companies can concentrate on the broader scale of business sections, while some details are up to an expert. - Gain access to world-class capabilities :
The employers who leaded their forces to inside of the company; now can direct them to the outside, to the client. - Free internal resources for other purposes:
Companies that choose outsourcing become, in a short time, more dynamic and eager for changes to be able to face new modifications enforced by today's economy.
Disadvantages of Outsourcing
- We tend to loose the managerial control :
This happens because it is harder to manage the outsourcing service provider as compare to managing one's own employees. - Can be a threat to the security and confidentiality of issues of a company:
Because if you hire someone you need to provide them informations about your company that is necessary for both of your to work together. - Communication is very crucial :
Working miles away, may lead to loss of data or inappropriate data if not handled wisely which may lead to misunderstanding. - Loss of internally generated talent :
It may hamper the growth of an employee by depriving him from the experience he would have gained by handling the business issue himself
Top Outsourcing Countries :
- India is the leading star of this global outsourcing surge, cornering approximately 80-90% of the global offshore market.
Expertise: Application development, maintenance, call centers, financial processing. Experts see India becoming a hotbed for more critical analytical jobs.
Costs: Labor costs have crept upward over the years but have been offset by falling telecom rates. Typical salaries range from $5,000 to $12,000 for technical staff, while back-office salaries range from $3,500 to $7,500. - Philippinesturns out 380,000 graduates annually, but only 15,000 of them are focused on technology. The country has cultural affinities with the U.S., is well-versed in U.S. accounting and customer service standards and has low employee turnover.
Expertise: Accounting, finance, call centers, animation, human resources.
Costs: Higher labor costs than India; technical salaries range from $5,000 to $10,000 annually and back office from $3,000 to $8,000. - Russia can claim the third largest population of engineers and scientists per capita. The bad news: Not many of them speak English.
Expertise: Web design, complex software development, aerospace engineering.
Costs: IT salaries range from $6,000 to $10,000. The country hasn't yet developed back-office competence. Telecom infrastructure costs are higher than average. - China's technical schools turn out 50,000 graduates annually, many of whom migrate west. Those who stay generally don't speak English.
Expertise: Transaction processing, low-end software development and maintenance.
Costs: IT salaries range from $3,000 to $8,000 annually. No real BPO competency. - Canada.U.S. neighbor to the north has solid educational system, with a qualified labor force of more than 16 million.
Expertise: Software development and maintenance, call center, tech support.
Costs: Being a nearshore alternative to the U.S. means IT salaries are much higher than most offshore countries, ranging from $25,000 to $50,000. - Mexico provides U.S. companies with millions of Spanish-speaking people to staff call centers.
Expertise: Spanish-language call centers, software development, data center outsourcing.
Costs: Low labor costs; companies can save up to 50% by outsourcing call centers to Mexico. Costs could be offset by unreliable infrastructure. - Ireland.Relatively small; 34,000 graduates annually, 5,000 of them technical.
Expertise: European shared-services centers, software development, call centers.
Costs: Tech salaries range from $25,000 to $35,000, making Ireland unattractive if primary objective is cost savings. - more about outsourcing countries in ..forbes.com, chillibreeze.com
Outsourcing Services
..are usually
- Information Technology (IT), as defined by the Information Technology Association of America (ITAA), is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information.
Weighing both sides
Outsourcing may lead to positive or negative results.The weighing factor will depend on what outsourcing company you are going to give your trust and how you communicate with the employees that you hire. Communication plays a big rule in this field of business, its like a building block that when one is removed the whole will slowly fall apart. New Flickr Photos
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Sources :
Sites to give thanks too....
- sitexdesign
- Facts about the advantages of outsourcing.
- softwareprojects
- Facts about the Disadvantages of outsourcing.
- forbes.com
- Top Outsourcing Countries.
- chillibreeze.com
- Top Outsourcing Countries.
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bloodberi
Thanks Laraine :).. Posted April 22, 2008 |
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LaraineRose
I read "The Four-Hour Work Week" - would be nice for all of us. 5 stars and fav'd and lensrolled to my Staycation lens. Posted April 19, 2008 |
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bloodberi
Thanks for the suggestion Aldric. I think I can make little improvements.:) Posted April 09, 2008 |
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Aldric_Chang
Hi, Posted April 02, 2008 |
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PrincessCinderella
wit nice lenns..hahahaha...very informative wala koi masabtan..hahahah..joke lang well keep it up girl..mwah..love you..yucks...nice bitaw naning bya ni nimo oi..hahhah Posted April 01, 2008 |
