Outsourcing of work processes is an action of transferring some part of an organizational process to a third party, whose specialization lies in the specific department. Offshore Outsourcing on the other hand, refers to this third party or the vendor, or provider being situated on a foreign land, which is considered to be a place away from the work location of the original organization.
Offshore Outsourcing has become a very feasible trend for Organizations that are expanding or just trying to reduce their overhead expenses.
Economically Offshore Outsourcing makes perfect sense when processed to a developing Offshore site situated in a developing nation. Developing countries like India and China have the capable Human Resources to conduct businesses, but they may lack the capital to set up huge infrastructures.
Such Offshore countries are usually willing to do business at a fraction of the cost, as they pay their employees less and also have an easier structure of tax payments. This profit carries on to the Outsourcing organizations.
Technically, the portion of the Business Outsourced for the process of Offshore Outsourcing which: might be in the department of sales, telemarketing, research or any other field; no longer remains the concern of the Outsourcing Organization.
The Offshore Organization hires its own experts and professionals. This creates an economically constructive division of labor that becomes fruitful to both the Outsourcing Organization and the Offshore vendor.
Offshore Outsourcing might be a way for an organization to lay roots in a foreign country where they may be thinking of expanding.
Therefore, a company might Outsource its business to a company in India or China in order to understand the prevailing considered market and to adjudge the customer in context.
This may be a ploy to sooner or later open a branch in these countries. Huge conglomerates that are perpetually expanding opt for Offshore Outsourcing as a survey method rather than as a method for garnering more business.
Some of the major countries or districts that provide Offshore Outsourcing services are:
1. India- Programming, Customer Support
2. China- Programming
3. Russia- Programming and R&D
4. Pakistan- Programming, Customer Support
5. Bangladesh- Programming and IT
6. Bulgaria- Programming and R&D
7. Ukraine- Programming and R&D
8. Belarus- Programming, R&D
9. Romania- Programming and IT
10. Philippines- Data Entry and Customer Support
11. Egypt- Customer Support and Programming
12. Malaysia- Customer Support and R&D
The highly technical use and availability of the internet has enabled service providers and small businesses to contract freelancers from all over the world to get projects done at a lower cost due to lower wages and property prices.
This trend runs in parallel with the tendency towards big corporations preferring Offshore Outsourcing, and may serve to strengthen small business capacity to compete with their bigger competitors capable of setting up Offshore locations or of arriving at major contracts with Offshore vendors.
There are considerably different of opinions on the impact on the various societies affected, which reflects the attitude of Protectionism versus Free Trade.
While experts view it as a potential threat to the domestic job market in the developed world and ask for government protective measures or at least closer scrutiny of existing trade practices, while others, including the countries who receive the work, see it as an opportunity.
Free-trade advocates suggest economies as a whole will obtain a net benefit from Offshore Outsourcing, but it is unclear if the displaced receive a net benefit. http://www.duta-griya.com
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