Job Outsourcing

Outsourcing is the new catch phrase now a days, with not a day passing without the mention of it. But Outsourcing of jobs from developed countries to third world nations like India, China, Philippines, Mexico, Russia etc has created a kind of negative attitude in the mind frames of workers belonging to the developed nations against outsourcing. Let's see the reasons for this fear psychosis.

Offshore job outsourcing of back office jobs and even high end jobs in a very short span has created job opportunities for the common man on one part of the world where as one the other it has lead to mayhem and speculative opinions.

Job outsourcing as a phenomena is not new. It has been there since ages. So why is it that there has been so much talk in the recent days about job outsourcing to foreign lands? Well, one of the reasons is the sheer pace with which things are happening. A sluggish economy, coupled with job cuts in a very short span has made people in developed countries like US and UK to build a negative outlook towards Outsourcing. This kind of backlash is seen particularly among the technology and allied workers. Many websites that oppose outsourcing have popped up and groups such as Techunite, Alliance@IBM, CWA, WashTech etc have been formed in US and UK in order to show their anger against outsourcing.

Economists are pretty much sure that outsourcing is here to stay and is in the stage of evolution. The backlash in US and UK against outsourcing is being compared with the IT revolution of the 90's when manufacturing jobs were being replaced by IT jobs. Plenty of workers in the manufacturing area were laid off with short notice and there was large scale mayhem. But the society seemed to cope up well with the situation and presently no one seems to be complaining. Economists predict a similar fate for Outsourcing and who knows they may be right. Cause no matter what, the US and UK economics are actually benefiting in a major way due to outsourcing.

It has been predicted that for every $ 100 of job outsourced almost $ 142 gets reinvested in the US economy making this very much a win-win situation. Also recent studies indicate a labor shortfall of 5.6 million in US by the year 2010 and this gap can be filled only through job outsourcing.

So irrespective of short term job losses the economy is sure to benefit immensely in the near future due to outsourcing

Outsourcing American Jobs to Foreign Country

Though American companies are reaping huge benefits by outsourcing their back office operations to third world counties like India and China, there are many technical and allied workers who are not the least happy.

A survey indicates that many workers in developed nations feel that companies that outsource services to other countries should be penalized and most are of the opinion that they would lodge a lawsuit if affected by outsourcing.

American Job outsourcing has been in news for quite sometime and the situation seems to grow worse as more and more companies' lay-off employees. But is the situation really that grave? Probably not! A survey indicates that less than 10% of American workers loose jobs due to American Job outsourcing which makes the picture clear that the problem is somewhere else. May be people have become rigid because of the sheer pace at which things are happening.

Many economists now claim that the situation in the West is only temporary and the climate will change as the US economy boosts and newer jobs are created.
Oasis is an outsourcing service provider organization that specializes in providing services related to Human resource activities on an outsource basis. Oasis outsourcing is a professional employer organization or a PEO that can offer various services like worker compensation, worker insurances, unemployment insurance, 401 plans, recruitment services and risk management

The Outsourcing market is estimated to grow tremendously in the coming few with an increasing number of companies planning to outsource both low end and high end jobs to offshore destinations. Also the number of companies providing outsourcing services is on the rise, thus resulting in larger variety. Due to the fact that more and more companies are outsourcing, the risks are getting smaller as businesses have more experience and clearer objectives.

1. Concentration on core business areas

Back office operations of a company require high maintenance and specialized attention. Yet most of them are critical for the company's everyday activities. By outsourcing their back office operations businesses can concentrate on their core competencies while their back office operations are being managed smoothly by a specialized third party company.

2. World-class technology at lower rates

Investing in new technology is very costly and often risky. As the technology market develops rapidly, it is difficult to keep up with latest innovations and solutions. Thus outsourcing to companies that have the resources, expertise and desire to continuously update their technological solutions, offers a true advantage of outsourcing.

3. Skilled manpower at affordable prices

Outsourcing gives a company the ability to get access to skilled and trained man power at extremely low rates. This in turn leads to an increase in productivity as well as cost savings. By outsourcing a company saves on recruitment, training and other human resource costs it would otherwise have to maintain internally. Also an advantage of outsourcing is that a company is able to utilize the kind of expertise it could not internally provide.

4. Increased productivity

By employing skilled manpower in larger numbers at lower costs companies can really increase their productivity. This in turn would result in better customer satisfaction and increased profitability.

5. Beat Competition

In today’s fast paced global economy a company needs to provide high-quality services to its customers in order to retain them, as well as provide the services for cheap prices. Outsourcing in this case can help the company maintain lower rates with better service solutions, thereby giving them a better market position or even a competitive advantage.

6. Tax benefits

By selecting the right BPO destination companies can save up on taxes in turn saving on costs.

Offshore Outsourcing India

India is fast emerging as a winner in this outsourcing services hype with almost 82% of the US based companies ranking India to be their first choice as an offshore outsourcing destination. Being a talent rich country, India has all the right resources, infrastructure and facilities to stand apart from the crowd as one of the best offshore destinations to outsource services.

The Indian government is concentrating a lot in developing the country's Electronics, Information Technology, and Telecommunications infrastructure and the success of this promotion is being reflected in cities like Bangalore (India's IT capital), Chennai, Mumbai and Pune. Owing to these reasons the Indian BPO market has grown from 0.8 billion US dollars in 1999-2000 to 1.5 billion US dollars in 2001-2002 and is estimated to grown to 17 billion US dollars by the year 2008

In with the competition, Indian companies/firms are constantly moving up the value chain and are equipped to handle all kinds of low end as well as high end services. The services that are currently being outsourced to India are IT related services, data entry/maintenance services, software research/ maintenance/ development services; IT enabled services, back office operations, business process outsourcing, web development services, CRM/SCM, medical transcription services and so on.

There are many websites such as www.bpoindia.org, www.outsource2india.com that give information regarding Indian BPO vendors, their location and the services they offer. In addition to this, international organizations like the outsourcing institute (OI) gives information regarding suppliers and also provides up-to-date info regarding the latest developments and trends in the outsourcing scenario. The OI is a free service and is a great help to buyers looking for good outsourcing solutions.

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