| There has been a lot of talk about the pros and cons | | | | 2. More sophisticated jobs - Outsourcing jobs will move |
| of Offshoring and Outsourcing. This is because of the | | | | less important jobs out of the client company |
| fact that you can actually get bigger profits while | | | | therefore creating new sophisticated ones. This will |
| saving a lot of money in the process. Offshore call | | | | require higher qualifications thus pushing the country to |
| centers have already proven that. Such strategy | | | | educate its citizens more and focus on improving the |
| enabled companies in the US to save millions and give | | | | quality of their own employees. Doing call center jobs |
| jobs to economically challenged countries therefore | | | | for example, requires patience and the ability to get |
| reducing dependency to US financial aid. It is a win-win | | | | your point and message across without resulting to an |
| situation for both parties and here we're going to break | | | | irate customer, now if these jobs are offshored and |
| down the good things about offshoring and outsourcing | | | | outsourced, then future employees will have more |
| into 3 points: | | | | challenging and fulfilling jobs waiting for them. The |
| 1. Lower priced goods and services - cheaper cost of | | | | focus now would be on improving more skills and |
| production means lower priced goods and services. If | | | | creating higher quality employees. The effect will reach |
| the client company is able to save $20,000 on | | | | farther than the scope of the company and would |
| production cost, the product can be readily made | | | | prove to be beneficial on a wider scale. |
| available at a lower price. Lower price for a | | | | 3. Focus on core functions - In business functions, |
| commodity means the people have greater purchasing | | | | depending on the nature of the business, what's usually |
| power thus the number of products that gets into the | | | | the unnecessary added worry is the Customer |
| hands of consumers tends to get bigger. Profit is | | | | Service part of the business function. If we outsource |
| earned at a lower cost. That is what's important in any | | | | this, we reduce added risk and worry and can focus |
| business venture. Offshoring and outsourcing makes | | | | on more important aspects such as Research and |
| that seemingly simple business logic (but so hard to | | | | Development, Production/Operations, Finance and |
| fulfill sometimes) definitely possible. Let us take for | | | | Administration/IT. Most client companies employ |
| example customer service or tech support: In the US, | | | | customer support employees from other countries to |
| you can save up to 50% cost by hiring a Filipino | | | | reduce the cost and then give more funds to |
| college graduate as compared to an American tech | | | | Research or Marketing. This is a wise and logical |
| support employee who probably has lower education | | | | move that delivers better results at a lower cost. |
| qualifications than his Filipino counterpart. Saving cost | | | | In offshoring and outsourcing, good things just keep |
| and giving out jobs to places where it matters is one | | | | coming. What's amazing about this is that you not only |
| of the plus sides of offshoring services. In short, it's | | | | get to cut your costs but you are also able to provide |
| getting higher quality workers and at the same time, | | | | jobs for developing countries while raising work |
| cutting back on cost. These two ideas seem far from | | | | standards in your own company. Results are seen |
| each other especially when talking about basic | | | | through lower priced goods and services, refined job |
| marketing principles but this is entirely made possible by | | | | opportunities and development of your company's |
| offshoring and outsourcing. | | | | core functions. |