Offshore Outsourcing: An All Win Premise

The advent of internet, globalization, free marketing, and liberalization has turned the world into a small global village consequently destroying all trade barriers. The awareness that offshore outsourcing can boost productivity sans forfeit of class has impelled MNC's, in all segments, to endorse this loom. A good number of major IT companies do most of their business overseas and obviously want to have some of their employees in those markets. Lower wages in some countries are also a huge incentive to move operations, especially since high-speed communication removes many of the barriers to dealing with U.S.-based colleagues and customers. Therefore, numerous MNCs in USA, Europe, Australia, and Japan have initiated IPOs (International Procurement Organizations) in developing third world countries particularly India, China, Mexico and Brazil. Offshore outsourcing is the practice of hiring an external organization to perform some or all business functions in a country other than the one where the product or service will be sold or consumed. It can be contrasted with offshoring, in which the functions are performed in a foreign country, whether by the foreign subsidiary of the same company or a third-party. Opponents point out that this sends work overseas, thereby reducing domestic employment and domestic investment. Many jobs in the infotech sectors - such as data entry, and customer support - have been or are potentially affected. Offshore Outsourcing ensues largely in the IT sector, followed by medical transcription and other health care-related jobs, automotive spares/components, engineering segment, and business processing, accounting, advertising, Human Resource Management and Development, financial investment and consultancy, legal services, and network security. Emerging countries like Philippines, Malaysia, Vietnam including East European countries from the former Communist Bloc i.e. Poland, Hungary have watched India effectively change it's world image from a huge begging bowl to that of a proud, self-sufficient nation, and are keen to replicate it's success story on their own crumbling shores. They are beginning to challenge India's leadership in the off-shore / outsourcing industry, making it necessary for India to protect itself by stepping up data security, keeping the BPO / KPO / IT industries free from trade unionism and improving its educational infrastructure to ensure every student graduating is a suitable employee for multinational firms.