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Offshore Outsourcing: What side are you on?

A business cant be all things at all times, but a good business would like to be. It would be good business if companies could perform multiple activities despite their limited in-house resources. Can your business perform this monumental task? Do you want to know how? Have you heard of business process outsourcing?

"The growth of a large business is merely the survival of the fittest."

"Outsourcing" means several things. It is the use of vendor services in a business to business setting. Businesses are able to find other businesses to complement service in their respective industries. That can mean businesses facilitating other businesses in areas of software, training, financing, technologies, etc.

Outsourcing has tremendous implications within the states, but more and more companies are going offshore to seek performance in low to high-end functions of their business. The United States is a juggernaut when it comes to business development. Why would our companies want to look offshore to perform business functions?

Advantages of offshore outsourcing
- Companies can exploit the lower labor costs in third world countries such as India, China, the Philippines, and Mexico

- It cost considerably less for companies to build facilities in third world countries

"What recommends commerce to me is its enterprise and bravery."

- By outsourcing back office operations businesses can better focus on highly vital aspects of their business while ancillary issues are addressed via third party operations

- Skilled manpower is still available offshore but will cost considerably less

- Despite third world locations businesses can acquire first rate technologies and used them to further their business

- Being selective in locale will help businesses save big money in taxes

- Since employees cost considerably lower than in the U.S., businesses can use that to higher even more employees and in turn raise productivity rates

- By saving money in many areas while producing at high levels, businesses can be selective as to where to place their concerns and money. This will help them stay ahead of their competition on many levels.

Offshore outsourcing negatives
- There are no strict and well defined policies on outsourcing for U.S. companies which is great for the businesses and bad for consumers and U.S. employees

"What we call monopoly may be business at the end of its journey."

- More companies are being forced to outsource to keep up with their competition

- Many Americans feel that U.S. employees and companies that want to stay domestic are being treated unfairly due to lack of regulations

- Some companies have failed in outsourcing endeavors due to poor governance, lack of communications, cultural diversity, and lack of knowledge

- Small to medium sized businesses using third parties for outsourcing may lead to information leaking because some of these third parties are serving businesses of the same industry

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