Offshore Outsourcing Services: The Driving Factor To Save Cost And Time

By Author: Vijay K Shetty
Total Articles: 2541
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The widespread use and availability of the internet at every nook and corner of the world has made the globe a small place to live in. We now say, The world is at your Fingertips because the every object in the globe is just a click away. At present, with all due thanks to the concept of Globalisation, the world has become a market to all the items manufactured or any services rendered in any country or a continent. This is where the idea of offshore outsourcing service evolved.

Offshore outsourcing basically is the practice of hiring an external unit for the purpose of carrying out some business in the country except for the ones where the item was manufactured. In simple terms, a firm operating in a certain country should concentrate on their key strengths and outsource those activities which they find difficult to cope up with.

Let us now ponder over a few points which make India a highly qualified country for Offshore Outsourcing Services:

1. Availability of Low wage-High quality employees: Indian employees are truly being paid less than their American counter-parts. This does not mean that the quality ...
... of the service provided is low. Quality is pretty much the same. This is the key reason for the offshore outsourcing services to take place.

2. The Internet: With the internet technology, any data and information can be transmitted to India in a matter of seconds and by not having the firm to come all the way for data exchange.

3. Lower cost of production: The countries to which the services are outsourced are pretty much cost effective as compared to other countries. This is the reason for the companies to price their products and services lower than their rivals as the cost of production is very less.

The main aim and idea behind outsourcing is to minimize the cost and save time. This is done by dividing the company's activities into main activities and supporting activities. For e.g. A firm manufacturing Laptops can concentrate on the core part of it, i.e. Manufacture only the car frame and its engine. The supporting activity can be outsourced, say, get the tires made from Malaysia since rubber is cheaper, the advertising done at the U.S since people are creative and the spark plugs and other small parts manufactured at India, since the production of small automobile parts is cheaper.

Let us a look at few countries and their specialization in outsourced services:

India - Full Spectrum Services
Russia - Programming and R&D
Malaysia - Customer Support
Brazil - Web and software programming
China - Programming, Data Entry and F&A.

As of now, it is the developed countries which are known for outsourcing services and the developing countries including India are mainly at the receiver's part. India has proved its quality of work in the services and projects being outsourced and has maintained a Niche position in the developing countries market compared to other south Asian countries.

Vijay K Shetty, Platinum Level Author.
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