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.