| IT Service providers can now no longer put attention | | | | outsourcing to the IT Service providers in foreign |
| on the internal functions of the organization and the | | | | countries like India or China, frequently done to take the |
| technology but they have to now focus on the quality | | | | benefit of labour cost. Business Process Outsourcing |
| of the services they provide to their customers and | | | | contracts is being repeatedly given to the service |
| the relationship with their customers. IT Outsourcing is | | | | providers in the developing countries. Mostly the |
| the process to obtain services from an external | | | | educated workers in developing countries like India and |
| organization offshore. Outsourcing today is the hottest | | | | China work for a much lower wages than the |
| issue in the nationwide media. Today the outsourcing | | | | educated workers in developed countries like Japan. |
| providers in India like Tata, Infosys, Wipro, Datamatics, | | | | There is a large amount of savings from lower wages. |
| etc. are the leaders in the outsourcing industry. Most of | | | | In house employment also leads to an expensive |
| the large onshore providers have offshore subsidiaries | | | | investment in comparison to outsourcing. |
| too. | | | | In recent times, Offshore Outsourcing has become a |
| Outsourcing has become an exciting word. It’s an | | | | fiercely debated issue in the national media. In 2001, |
| important concept to understand because of its | | | | when the American economy started to come out of |
| business applications. In the corporate world, the term | | | | recession, unemployment as was expected did not |
| “outsourcing” refers to an exact kind of | | | | decrease. Offshore Outsourcing was also blamed as |
| outsourcing i.e. business process outsourcing (BPO). | | | | one of the factor to the unemployment recovery. |
| BPO is done when any organization turns over the | | | | Information Technology was a mainly sensitive sector, |
| management side of a particular business process | | | | and many American programmers lost their jobs to |
| such as accounting or payroll to a third party that is | | | | low paid foreign workers. The economists however |
| specialized in that particular business process. There | | | | have recently discovered that the rise in |
| are also Outsourcing consultants that assists | | | | unemployment rate is not the effect of offshore |
| organizations with structuring outsourcing relationships | | | | outsourcing. In fact, offshore outsourcing has really had |
| with the service providers. | | | | a positive impact on the American economy. |
| Offshore outsourcing or offshoring refers to | | | | |