Offshore Outsourcing is the process of international allocation of certain business processes to a third party service provider. Big US and European companies outsource some of their non-core business processes to Asian countries like China, the Philippines, and India. For once, it has just been hitting the news as a temporary business solution but due to the numerous outsourcing offshore benefits, it turned out to be more than just a process for the time being. While it is true that outsourcing presents more benefits for the companies, there are also some trends of disadvantages that hinder others from joining the bandwagon.
Cheap labor costs that come in developing countries provide the biggest incentive for the offshore outsourcing companies. The dense population in India provides a rich source of skilled man power especially in the field of IT and software development. With the huge pool of English speaking and computer literate workers, …
Read more
The organizations which are interested in outsourcing are often curious to know about the advantages and disadvantages of it. An organization can decide whether outsourcing is good or bad for them by learning a little bit more about it. Let us start with the advantages of outsourcing:
Advantages:
The operational costs can reduce to more than half if outsourcing is employed.
Expert, professional and high-quality service can be provided with the help of outsourcing.
Organizations are more flexible while employing outsourcing.
Organizations can devote more time on core activities as non-core ones are handled through outsourcing.
Companies can save training and operating costs, manpower, effort and time with the help of offshore outsourcing.
Business operation also get streamlined
An increased control of your business can be experienced with outsourcing.
Assurance is provided by outsourcing as business processes are carried out proficiently and efficiently and with a fast turnaround time.
The offshore partner will manage the team who does your work …
Read more
Lufthansa, Admiral Insurance, Carphone Warehouse, Shell, and Asda already have captive centers in South Africa.
Yes, according to Life-in-Africa (life-in-africa.info)
South Africa has a relatively established contact center industry which is still experiencing growth of around 30% per annum. Approximately one third of that growth relates to operations serving the offshore market. Several large companies, such as Lufthansa, Admiral Insurance, Carphone Warehouse, Shell, and Asda already have captive centers in South Africa. A strong foundation is therefore in place for South Africa to develop and expand upon in order to build its still relatively new Business Process Outsourcing and Offshoring offering. But does the country have what it takes to become both a near shore and offshore destination of choice?
Read more
Source By Richard A. McCormack – Manufacturing News
Governments throughout the world, and especially China, have put in place policies and financial incentives to attract and nurture outsourcing firms. These policies are now “impacting the market,” says the Duke University-PricewaterhouseCoopers study. “Growing competition among countries, cities and providers has transformed the outsourcing industry into a global race for market share. India’s success and pride as ‘the world’s back office’ has motivated other developing countries with a significantly underutilized university-educated population to replicate what India has done.
Outsourcing companies continue to experience rapid growth “in spite of the difficult economic environment,” says the study. “A large number of providers indicate their aggressive plans to initiate new software development and IT services in the next 18 to 36 months. In addition, the number of service providers planning to offer new finance and accounting, human resources and innovation services has more than doubled relative to …
Read more
That’s the first impression you get when you realise that jobs are being ofshored.
NOA Spill the beans
It has also been detailed in various studies, most recently from Nottingham University, that offshoring jobs does bring overall benefits to the UK economy. Their Globalisation and Economic Policy centre (GEP) found that the ‘efficiencies it [offshoring] has brought has actually boosted business and led British businesses to employ more people in the UK, not less.’
To top this off, Indian outsourcing giant, FirstSource, has created over 1,500 call centre jobs in the UK since 2006. Plus Indian investment in the UK, …
Read more
