Outsourcing no longer a secret business
Let’s define what outsourcing is. According to www.wikipedia.com, outsourcing is transference of a certain part of business to a third party and the execution of it by the third party, which is considered to be an expert in it. Outsourcing came in wide use in business and management in the 1990s when hi-tech companies began to spring up.
The main goal of outsourcing is cost reduction and/or efficient expertise. It is understood that this business should not be mission-critical, as it can be unwise, but the reality often has it otherwise. Among the areas that usually call for outside expertise are Information Technologies, Human Resources, Facilities and Real Estate Management and Accounting.
Also, a whole range of firms and organizations outsource for customer support and call centers, as well as engineering and manufacturing. The main feature of outsourcing is that it is not inherent with the major activities of the company, it is not the core business that the company does.
In view of this tendency a platoon of call centers were established in such companies as China, Eastern Europe, China, Philippines, Pakistan, India, the Caribbean, Israel and Ireland. However, some US companies have gained negative publicity for their outsourcing efforts among the predictions that newly hired staff will have troubles communicating with customers.
So the reason behind outsourcing is cheaper labor force. Industrially developed countries are known to offshore their business in the developing states, where they can get top-notch technological services and ideas on the cheap.
Recently, several IT companies in India has been suggesting that the firms and companies that benefit from IT outsourcing in this countries go transparent about the deal wins and name the producer of services. This, they believe, would contribute to the reputation of Indian specialists, make the companies that feed on outsourcing clear about what they do and provide more visibility for Indian talent on the market. Some have agreed to disclose the names.
[tag] outsourcing, outside expertise, IT outsourcing, offshore, core business, cost reduction, efficient expertise [/tag]
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