How Outsourcing Changes the Way the World Does Business
Outsourcing has been defined as a strategic tool that can have a powerful impact on your company’s growth and financial stability. As a matter of fact, business experts agree outsourcing is essential for a company to prosper in the 21st century. Why not? Business Process Outsourcing is now the fastest growing segment within IT services by which in 2007, that offshore BPO is most likely to account for 14% of the total BPO market, compared with only 1% in 2003.
Now, that is just a one among the many ways outsourcing has changed the way business people do their business. It is for a better one. While they benefit from it, it helps most people’s lives.
On the other side of it, rumors highlight that when companies shift to outsourcing, the fast-paced changes can be harsh and deep. Some people might easily adopt, others may not. But a more enlightened, strategic view of global sourcing is starting to emerge as managers get a better fix on its potential. The new buzzword is "transformational outsourcing." It is a change for a faster and better way business people do their business. Many executives are discovering it’s really about corporate growth, making better use of skilled U.S. staff, and even job creation in the U.S., not just cheap wages abroad. It is indeed true that through outsourcing the labor savings from global sourcing can still be substantial. But it’s peanuts compared to the enormous gains in efficiency, productivity, quality, and revenues that can be achieved by fully leveraging offshore talent.
Outsourcing is a modern day boon. For the employers, it grants businesses the freedom to dump non-core, yet important sectors of its administration on companies specializing in those very individual aspects, leaving the businessman free to wholly concentrate on those areas of the company. The most enticing advantage of outsourcing is the cost effective factor. Human resource and IT services in the United States or Europe are not exactly inexpensive. Complicated business jargon should be avoided and say that outsourcing is basically an option that offers these services at a much, much lower rate such as a cheap but highly productive mass work force and with this concern, the best examples are India and the Philippines in Asia, which are having a lot of call centers and other outsourcing related industries.
Furthermore, it has been highly noted that outsourcing gives you access to knowledge pools that sometimes, or often, can’t be found in the company. Instead of trying to build your own creative design department, you could, for instance, outsource your web design and marketing materials development to specialized agencies. In the old economy, big companies had their own departments for every business requirement. In the network economy, companies go back to their core business and use a network of external partners to take care of the rest.
This is the new trend of businesspeople of today. This is the vivid change in most of the industries, where we can really think its advantage, most of its advantages can be seen in the side of employers finance-wise.