There is no doubt that outsourcing has actually benefited the countries that undertake the outsourced projects. Countries like India, China, Philippine etc. have developed their infrastructure immensely to adapt with the outsourced projects. The employment status also has been better in these countries. Nevertheless, it is not that only these outsourcing receiving countries have benefited from outsourcing industry, the foreign investors are also very pleased to outsource their businesses. It is a mutually beneficial thing that has benefited both the outsourcing providers and the outsourcing undertakers. There may be some opposition on globalization. However, outsourcing will still be done. There are many factors leading to the above situation, some of them are as below:
The cost efficiency factor is generally the primary factor why companies outsource their businesses. In fact, skilled labors and qualified professionals of developed countries are much more expensive than those in developing countries. India and China are the two world’s densely populated countries and the outsourcing professionals in the two countries are available at a quite low price, these contributes to the enterprises to cut cost and increase revenue. Because the multinationals will always want to outsource some businesses for cost efficiency, therefore, the outsourcing will still be in demand.
Specialized services factor. Anyway, how skilled the labors of a country are, there are remain some assignments they can’t do or don’t have experience in. For example, if there is a specific kind of business which only can be done in China rather than training the in-house employees, the enterprises will seek to outsource their businesses. Distinctly, the cost factor is really an important factor but here the experts with particular skills can offer specialized services which might not be available in the native country of those enterprises.
In addition, there also exist quality factor. Many enterprises are very strict about the quality of the businesses they delivered and don’t mind spending some additional money to reach their desired standard. Nowadays, as the quality of professionals and technology has evolved so much all over the world that the enterprises can’t avoid the idea of outsourcing their businesses.
About delivery factor, another factor of outsourcing is shortening of the delivery time. If some products have to be produced and delivered in India, then letting it produced in China would be a better selection than producing it in Canada. That will not only save the shipping time but also will help the clients get their products more rapidly.
What’s more, there is the time zone advantage factor. This is likely the least discussed factor but the outsourcing business providers realize this thing. Numerous projects need to be corrected and investigated before they were passed. For examples, if software is developed in a day in the US and then the testing and report generation will start in the next day. However, if the same software is developed in China in day time when it’s night in the US, it can be tested the very day it is made. This may sounds like a small issue but it can save massive time in the long term. Time zone advantage factor offer a base for enterprises to cut the time taken on projects.
Consequently, it seems unlikely that outsourcing will gradually disappear with time. Moreover, the demand for outsourcing will continue to exist and increase as the above outsourcing advantageous factors and can’t be replaced. What’s more, the developing countries will always be in need of employment, therefore, the motive power of outsourcing from the outsourcing receivers are also unceasingly.
