Thursday, December 01, 2005

To Off-shore or Not to Outsource

Off-shoring / Outsourcing is an in the face reality of the 21st century, but fewer than 200,000 American jobs lost to India in a presidential election year experiencing a low job growth has proven highly controversial. Yet, more and more stock market analysis to computer software development and troubleshooting service jobs are being off-shored / outsourced by US companies to India and other low-wage countries. Clearly, it makes economic sense to pay middle-class salaries rangingfrom $2,000 to $7,000 a year in these countries, opposed to paying the same amount per month for the same work in USA.

Responding to Colin Powell’s speech pressurisingIndiato open its markets to American goods, a thank-you for the off-shoring / outsourcing work it receives from American companies, Hari Singh, an Indian student retorted sharply: “Off-shoring / Outsourcing benefits the US as well since$1 outsourced here gives $1.40 back to the U.S. economy. We use U.S. computers to do the work, and we're drinking Coke and Pepsi. Every damn thing comes from the United States.” A statement confirmed by the numerous American survey companies hired to find out whether off-shoring / outsourcing was responsible for loss of American jobs and sluggish economy.

In perspective, off-shoring / outsourcing benefits both the outsourcer and the provider. Outsourcing benefits include:
Increased Productivity.
Cost Reduction without compromising overall benefit goals.
Reduced Employee Headcount.
Access to sophisticated technologies, and latest call centre facilities without buying them.
Tailored Vendor Offerings for Client Specific Needs.
Higher service level provisions to their employees.

Companies lacking infrastructure and staff with little or no interest in investing time and resources to build in-house capability find off-shoring / outsourcing is the right choice, a smart choice! The benefits of off-shoring / outsourcing have immense long-term benefits if one has the foresight and patience to invest in future paybacks. All said and done, off-shoring / outsourcing is part of the new wave, the new world order, the sooner one accepts it, the better!

The article sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development