Offshore Outsourcing Research

Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products and services are actually developed and manufactured. It can be compared with off shoring where the functions are performed in a foreign country by the foreign countries. Opponents point out that sending the work to other countries with lower wages harms the employment facility of that country. Many customer service jobs as well as jobs in information technology sector such as data processing, computer programming and technical support.

Types of Outsourcing:

1.ITO- information technology outsourcing.
2.KPO- knowledge process outsourcing.
3.Software R&D- offshore software development.
4.BPO- business process outsourcing.

The driving factor of outsourcing:
1.The wage difference between the offshore country and the native country is very substantial.
2.The work can be teleprocessed.
3.The work is repeatable.
4.The work can be transmitted over the internet.
5.The work is easy to set up.
6.The work has high information content.

Countries involved:

1.India( full spectrum services)
2.Ukraine( programming and R&D)
3.Brazil( web & software programming, game development, IT support)
4.Argentina (web & software programming, game development)
And Philippines, Indonesia, Russia, Pakistan, panama, Nepal, Bangladesh and so on. The chief sources of jobs are US and United Kingdom.

Sources of conflict:

The countries like US feel in a mixed manner. You must have heard George bush speaking about the country being sited as the real partner of US. However the people have mixed feelings. They are confused in the two word respectively protectionism and free trade. Some feels that the domestic work force of US is under threat and the government should take some protective steps however some fell that it is a chance for free trade.

Whatever might be the reason I must tell you that outsourcing as a whole has become very popular. The whole world is benefited with that and this best use of the internet. It has all happened just because of the emergence of the internet. The growing information technology market is really changing the global situation. It is really sad to experience global economic crisis affecting the whole world. I must tell you that this will really be all right within two or three years. However some steps are needed to be taken in offshore outsourcing too.

The offshore outsourcing is really a new dimension for the economy of the developing country. Various developed countries are looking at the developing countries market as a real place to boom their outsourcing business. I must tell you that all of the companies are really in profit as far as outsourcing is concerned.