| Globalization & Internet has taken hold of world | | | | analyze from this quote; |
| leaving no distance between far-flung nations. At this | | | | "Certainly cost reduction, but it's not as simple as that! |
| time, offshore outsourcing entered the scene with a | | | | Cost reduction was only part of the reason that |
| big boom & has become one of the most | | | | companies were considering offshore outsourcing, |
| important management practices today. Many foreign | | | | there were benefits to be had in time-to-market and |
| corporations like American started outsourcing their | | | | quality, leading to an adage that companies initially |
| blue collared jobs including information technology | | | | chose India to save costs but stayed for the speed |
| development and IT "back-office" projects to | | | | and quality!" (National Outsourcing Association (NOA), |
| developing nations, like India, China, Philippines & | | | | 1st Annual Offshore Outsourcing Conference - 23rd |
| many others. Providing low-cost services & high | | | | July 2003) |
| quality, these nations are developing with a great leap | | | | Now, when we are discussing potential reasons, then |
| in economy through outsourcing. But, why India is | | | | India's powerful workforce with largest pool of latest |
| preferred by American & other foreign | | | | technical skills can't be spared mentioning. Indian |
| corporations? | | | | companies understand that cost alone can't continue |
| Offshore outsourcing takes account of a great deal of | | | | to keep India's present dominant position in the |
| thought. Rapid cost reduction should not be the only | | | | offshore Outsourcing Industry. |
| drive to outsourcing. Quality solutions & services | | | | In short, India is preferred to other countries because |
| by Indian companies are credited for being the new | | | | of;oHigh-quality brain poweroState-of-the-art |
| attraction for offshore outsourcing to India. When | | | | technology with world-class systemsoOne of fastest |
| processes are offshored to India, companies not only | | | | growing economiesoRich in resourcesoStable |
| get the advantage of low cost but also experience | | | | governmentoPrivatization of the infrastructure sector |
| value addition i.e. productivity and quality. | | | | Concluding with few words, I would say that rising |
| Source countries get approx. 40-50% savings from | | | | offshore outsourcing is fueled by an amazing |
| outsourcing to India. However, one should think twice | | | | combination of efficiencies and profits required by |
| before outsourcing because outsourcing would require | | | | producers of goods and services together with the |
| a dedicated relationship and a proper understanding | | | | consumer-driven passion for quality goods at |
| between the parties involved which simply means, | | | | affordable prices. Cost-effective production of quality |
| point of saving money is firm at its stand, but one has | | | | goods and services becomes the elementary driver |
| to realize that lack of proper communication may | | | | for the source country while development of a |
| cause relapse of the promise of cost reduction. | | | | globalized service-based economy for the destination |
| Other than savings & value addition, immense | | | | country. The improving economy is based on highly |
| creativity, speed, scalability & talent of Indian mind | | | | sought-after skills and delivering services using |
| also tend to startle the outsourcer once offshore | | | | low-cost broadband communications as the primary |
| outsourcing relationship starts. This is what we can | | | | mode of transport. |