Problems of Outsourcing

Outsourcing has many advantages for the company owner but it can be very frustrating for people where the business is based. The people are deprived of jobs. The people pay taxes and the government gives tax relief to these businesses so that they can employ more people but these companies simply maximize profits by getting their work done in some other part of the world at very cheap cost. This is because in the first world countries wages are much higher than the third worlds as cost of living is also higher. Hence the local people are greatly agitated but on the other hand it provides good employment schemes for the developing countries.

Indian Jobs Outsourced to China

India was recently rocked by mass protests by employees of business firms all over the country that had outsourced jobs of most of the employees in a bid to cut the cost of running operations in such a faraway country due to the recent cash crunch. Most of these companies are American companies and they had invested in the Indian market finding it to be one of the fastest developing markets in the world. But the recent fall of the US dollar and the dip in the New York Stock Exchange fuelled the outsourcing of jobs, most of which have gone to China.

Outsourcing Trends

The concept of cost cutting and profit maximization has given birth to the concept of outsourcing. The idea is very simple, to get the job done where labor is the cheapest. The idea is very simple and is extremely easy to materialize. One just needs to send the easy jobs to be done in some third world country where the work can be done efficiently at almost half the cost. Hence the third world countries like India are at the forefront of the outsourcing business today. There are a large number of unemployed educated youths who are willing to work at a very cheap rate determined by the capitalist class.

Outsourcing Jobs

Business has today has spread all over the world and everything about has become multinational. Accordingly, outsourcing of the business has become a part of it. Just after the election of Barrack Obama as the President of America, there were mass protests by people whose jobs were outsourced to bigger markets to bigger markets such as India protested outside the White House. This forced the President to state that no jobs would be outsourced in the future and it is the right of the people of a country to have a job in a national firm. But this was also met with protests from owners who think that this will harm their business. All in all, business outsourcing is a problem that will take years to solve.

Business Outsourcing in India

From the past few years, India has become a popular destination for business outsourcing centers. Cheap labour work has made the country one the best business outsourcing centers. The labour fee is quite cheap in India in comparison to other countries. For this reason, many International Companies have been choosing this destination. This is increasing the job prospect in country. One of the major outsourcing businesses is the IT projects. In the recent years, considerable amount of IT hubs have been established throughout the country to increase more work opportunity. Huge investments are not always required for business outsourcing. All you need is the working skill and international relationship.

Why Indian companies are the hot IT outsourcing destination

A well-known fact that India has become one of the world’s biggest outsourcing hubs ever. Now what are the reasons that attribute to make India one of the leaders of the IT hub is what is discussed below:
• Custom Application Solutions-Along with mobile applications, these include custom software solutions as well. Web, internet and net applications form an integral part of these solutions.
• Offshore Outsourcing solutions- Offshore product development is what is discussed here along with other software development
• Software development solutions- Custom and medical software is dealt here.
• Other solutions-Software testing, software migration and software porting is all done here, under one roof.

The Essar Group’s Entry into UK business markets

The World wide business outsourcing partner of the Essar group, Aegis on the 16th of July, 2011 revealed publicly its plans to enter into the UK business markets by offering six hundred new jobs in Manchester. These new jobs will be offered through a customer care center which would occupy 40,000 square feet at the Piccadilly Garden’s City Tower in Manchester city. Business outsourcing in UK was much needed by the Essar group of industries and the reason behind them selecting Manchester city over all the other major cities is that it possesses a developed BPO industry and it also possesses a large student population of over 1,00,000 students. Aegis provides service outsourcing in over 12 countries and its revenues touch $700 million each year.

Outsourcing Business with the Freelancer’s Assistance

A free lancers job has been on the booming on the charts in the recent time. Many employers consider a free lancers job to be more convenient than a permanent job, though it does involve few cons. Free lancers are basically outsourcers of the business firms who have to do a specific series of task given to them by the respective firms. When a business firm is in the initial stage of outsourcing, it is advisable that they start of with very minor tasks in order to get a hang of the scenario and then gradually increase the number of tasks.

Benefiting from outsourcing

Small business nowadays faces a lot of problem in delivering their products. Most of these business suffer from lack of an form of publicity. Outsourcing is an important feature that helps small business to do well and turn their business into profitable ventures. One of the basic approaches is setting up a business page on the various networking sites like LinkedIn and Face book or twitter. These help people to know more about the business and the products. Striking conversation with followers on Twitter can help gain trust among customers. Moreover, with tools like Google docs or Base camp small business need not worry about software compatibility between the clients.

Offices or sweat shops?

Most the times, views of businessmen outsourcing their work to other countries are taken when we speak of business outsourcing. And because of this, we tend to take their side and build up a prejudice against the employees of BOP industries. But are the really the only ones to be blamed? The main reason one would work in a BPO would be financial constraints or lack of educational qualification. But these days, the rate of employee turnover in these organizations has become ridiculously high. The management doesn’t think twice before firing an employee. So the question to be asked is: Are BPOs organizations having proper offices or mere sweat shops?

Outsourcing- A necessary Evil

The essence of good business lies in cost minimization. This is achieved by proper outsourcing of business. So that work can be done faster and cheaper. Due to intensive globalization no place is really far away and with computer network business processes of a global company can be done in the dingy offices of a third world country with ease and at a lesser cost. The question is on ethical grounds. Outsourcing may create job in a third world country but at the same time it may deprive the population of the place where the business originates, from employment. Thus questions are always raised but with outsourcing cost cutting is ensured resulting in smooth running of a business enterprise.

More Business but Lesser Investment

Like a ritual every day, the phone rings at that exact time of the day. A voice with a weird accent starts declaring war against my ears. Some days the voice becomes my financial advisor and some days he informs me about what a huge mistake I have made by subscribing to a certain phone service provider. Business outsourcing has come a long…long way, literally! People call other people from half way across the globe to help them with choices in the market. Why is this trend catching up so quickly? It is because of one simple reason, more work for lesser pay or rather lesser investment.

Why less developed countries?

Business outsourcing is a huge industry in the lesser developed nations of the world, often employing a large number of youngsters. The most common area of outsourcing is technical support. There is a very good reason for this.
Technical support staff doesn’t require much expertise on the field, and subsequently, training operations are not very expensive. It reduces the cost to the company on account of the work that isn’t part of their core ideas. They can easily be done through people who do not charge an arm and a leg unlike in the countries where these organizations are based. They are beneficial to the organization and the economy of the other country.