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.