Business & Finance Outsourcing

Offshore Outsourcing - a Characteristic Feature of Globalization

Many experts unanimously predict that the global offshore outsourcing industry revenues will double in the next year.
Research studies say that large-scale businesses in the USA and Europe outsource from 50 to 80 per cent of all their IT operations.
There are many reasons, why American and European companies employ offshore outsourcing: First of all, most IT companies can offer serious cost reduction plans.
Offshore outsourcing firmsinPhilippines, for example, manage to pay out reasonablyhigh wages to highly professional employees in the outsourcing countries and at the same time greatly reduce the costs of businesses located in the USA and Europe.
Offshore outsourcing firms hire one of the best IT graduates, as they can pay more than the local companies and offer great workplaces with most technological innovations.
Offshore outsourcing countries such as Russia, or China offer a great number of high-skilled and experienced specialists and provide only highly trained, quickly adaptable employees who are qualified in various fields.
Besides, some of the countries, such as India first of all, account for around 500,000 new IT and engineering graduates every year, most of whom speak English as their first language.
Jobs in the IT industry tend to be really prospective, therefore IT specialist is willing to find such a job and hold it.
The offshore outsourcing firms can also help establish a 24-hour working environment by means of combining their efforts with the foreign-based employer if there is a significant time difference.
It should be mentioned here, that of course there are many offshore outsourcing companies, and not all of them provide services of exactly the same level of quality.
Still, most of the sizeableoffshore outsourcing firms seek to develop and improvetheirquality management process as well as receiveinternationalaccreditation , such as, for example, ISO 9001.
Around 50 per cent of all companies worldwide, which correspond to the USA Software Engineering Institute's Capability Maturity Model standards are situated in India.
That is why severalEuropean and American firms would like to use the possibilities ofoffshore outsourcing services with the aim to staycompetitivein the internationalIT industry.
It is obvious that offshore outsourcing has another side, which deals with people, losing jobs in the USA and Europe, because of the popularity of offshore outsourcing.
However, this is a logical consequence of the so-much globalised economy, and if we believe that globalization opens up new frontiers and is generallybeneficial for the humankind, then we should take such a migration of work places as an adequate reaction.


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