Business Benefits Of Offshore Outsourcing
Outsourcing refers to the practice of businesses to hire out certain
business processes to outside firms. There are several different
aspects of doing business that can usually be handled more
efficiently by another firm that specializes in those particular
areas. Manufacture and transportation of certain products may be
outsourced, as well as certain duties in the service sector, such as
accounting, customer service, and such. Using a firm located in a
distant country to handled outsourced tasks is known as offshore
Hiring out such tasks to firms within one's country is known as
inshore outsourcing. Using companies located in neighboring
countries is called near shore type. Each has its own unique
advantages and drawbacks that business managers must consider when
choosing a firm to perform the tasks to be outsourced.
Offshore outsourcing tends to send specific types of jobs to certain
geographic regions of the world. For example, a growing number of
businesses are hiring out their customer call center jobs to firms
in India that specialize in operating call centers. Any one operator
may assist customers of several different companies in a day's time.
The reason for this lies in the fact that most Indians speak
English. These individuals will work for much less in wages than a
person doing the same job in the US or other more developed nation.
This allows Indian firms to bid quite low when naming a price to
charge for their services on a contract basis. The total cost of
handling customer calls is much less than it would be if a business
chose to man its own call center with full time operators.
Different regions of the world have different resources to offer.
Many countries offer manpower at very low rates. A growing number of
people around the world are developing specific skill sets that are
highly needed by business owners but would be too costly if the
people were hired as full time employees.
This is one reason for the prolific growth in offshore outsourcing.
Another reason is the type of tasks being outsourced. It is a sad
statement on the nature of people that there are some tasks that
many individuals view as being beneath them. These individuals in
developed nations will not take a job that requires them to perform
these types of tasks. People in other areas may see these same jobs
as an opportunity and perform the tasks with diligence.
Every decision made by business owners and managers has an impact on
the business's profitability. One of the easiest ways to increase
profits is to reduce the costs of doing business. With a number of
administrative, or bureaucratic, tasks being outsourced, it is no
wonder business owners seek to save as much as possible on these
Offshore outsourcing allows business owners to take full advantage
of the global economy. They can find providers who operate in a
country where the average person lives in poverty but would
willingly perform the needed tasks for a wage that individuals in
more developed or economically richer countries would not take.
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