Archive for April 27, 2010

Offshore Outsourcing Statistics

Offshore outsourcing is one way to regenerate your business into new heights. Your company can outperform other industry rivals because you can guarantee cheap but quality goods and services due to lesser company expense. Outsourcing generally started from the manufacturing business where in global businesses such as Dell outsources their parts from their global branches due mainly to inexpensive labor. Then offshore outsourcing spreads into the IT industry these past few years because outsourcing countries like the Philippines, India and China can provide quality and cheap services for their clients worldwide compare to their Western counterparts. If you are in doubt in outsourcing your business, then you might want to look at the following offshore outsourcing statistics:

  1. Three countries that are the most famous source of cheap labor are China, Philippines and India. A lot of entrepreneurs and global companies prefer to outsource their business from these countries because of cheap labor expense and the ability of workers from these areas in communicating effectively in the English language is really good. Read more

What are the risks of offshore outsourcing?

Offshore outsourcing has its glories but it also has its risks. A lot of organizations these days prefer to outsource goods and services from countries where labor is cheap. This is done to help them cut down on the company’s expenses and to promote better pricing for their products and services so they can compete or outdone their market rivals. Even with these benefits, offshore outsourcing can also be detrimental in the company’s development.

One of the greatest risks of offshore outsourcing is its threat on the amount of jobs for the country wherein the company was made. People from the US have loss their jobs and needed to know more skills to be more competitive with their rivals. They must also be cost competitive so they can rival their competitors’ wages which is far cheaper than what they use to have. Read more

What are the advantages of offshore outsourcing?

Due to the dynamic economy and of course due to the recession happening right now in the US, many firms have decided to outsource some of their manpower. They prefer to outsource goods and services in the effort to cut their company’s expenses and to maximize their profits. Those who have not tried offshore outsourcing then these are some of the advantages you can obtain from it:

1.Offshore outsourcing can boost the in-house worker’s efficiency. Those companies who outsource work for the less skilled tasks can create more skilled positions within the organization and make more strategic plans for the company’s future.

2.Another advantage of offshore outsourcing is that, it can create more competitive products for the company in a lesser costs which can benefit the consumers greatly and promote economic growth as a whole. Read more

Philippines Offshoring Strategy

Offshoring is now becoming widespread across the globe. In fact, it is the kind of business method that’s taking over the world by storm in this day most especially in the third world countries where IT and software industries are currently thriving. Not like the traditional model of hiring an employee to perform a job, offshoring, as the word describes, is a relocation of business processes to a non-domestic location, usually to reduce costs. This may include production or manufacturing and all the like.

Actually in offshoring, you outsource outside your country. In developing countries like the Philippines, for instance, offshoring is now unbelievably prevalent. Owing to the advent IT and software industry boom in the country, offshoring has become the leading business trend in the Philippines in this day and age. Read more