Global Outsourcing & Offshoring Trends
Offshore Outsourcing is on the Rise After Recession
Global Outsourcing & Offshoring Trends
It was during the late 1990s that the term outsourcing has become part of the business lexicon. Back then, it was only small aspects of running a business which were outsourced to save on labor costs. Later on, business owners realized that not only does outsourcing provide them with great savings on company resources, but it also allows them to focus on their core operations.
The cost-effectiveness of outsourcing was even more realized when offshoring was introduced. Here, instead of simply looking for a company within your country which provides outsourcing services, you can find an outsourcing business from another country where the labor costs are really low.
When offshoring was first introduced, countries like India, China, Mexico and the Philippines dominated the market. The pool of talent in these countries is quite plentiful, and the labor costs are really low as compared to UK or US standards.
However, the recession has changed the picture for the offshore outsourcing industry. Since 2009, it seems as if the financial slump that the US and almost all global economies have slowed down the trend of outsourcing certain tasks, jobs and projects to offshore companies.
Quick Facts about the Rebirth of Offshore Outsourcing
The good news is that based on a report by the Everest Research Institute, the slump is already coming to a close. There is an increase in activity as the global economy slowly but surely recovers from the recession. Anand Ramesh, a research director at Everestsaid that the offshoring industry is gathering momentum again. The delay was caused not just by the recession but also because of lack of management focus
