| Business outsourcing is a growing trend these days. It | | | | processes. There are basically none core business |
| refers to a process in which certain business functions | | | | processes that tend to swallow a huge portion of their |
| and processes are entrusted to a third party company | | | | resources and eat so much of their valuable time, thus |
| that specializes on those jobs. Outsourcing | | | | limiting the potential growth of the company. |
| telecommunications services, software development | | | | In addition, outsourcing telecommunications servicesand |
| services, insurance, Information Technology services | | | | other business functions yields cost saving benefits for |
| and accounting and finance are the most common | | | | many companies. Shortage of skilled workers who |
| business process outsourcing firms in Asian countries | | | | have the technical abilities to perform specific functions |
| like India, China and the Philippines. | | | | does not impose a problem on countries like India, the |
| Before, business process outsourcing as a concept of | | | | Philippines, and China. Despite the cheap labor costs |
| business strategy was not really recognized as it | | | | that most Business process outsourcing firms from |
| seems today. During the early stages of its | | | | these countries offer, India and the Philippines are both |
| development, small and low grade jobs, such as | | | | well applauded for providing quality output as per the |
| janitorial and security services, were the only jobs that | | | | American and International standards. |
| were outsourced in the United States. But today, | | | | But just like every normal business solutions, business |
| almost every business processes are now | | | | outsourcing also comes with several disadvantages |
| outsourced. These include IT services, customer care, | | | | which tend to hinder others from venturing into |
| graphic designing services, and web content services. | | | | business process outsourcing. One outsourcing risk is |
| Perhaps due to its many advantages, many | | | | the loss of managerial control on functions and |
| international companies now see outsourcing as a | | | | business processes being outsourced. Though bound |
| powerful tool and business strategy to fully maximize | | | | with a written contract, the transfer of full managerial |
| the profit earning capacity of their every business. | | | | control to a third party company can impact expected |
| Outsourcing allows them to cut down costs and focus | | | | outputs as Business process outsourcing firms are not |
| on their core business processes. With the current | | | | motivated with the same vision and drive that the |
| economic situation where recession greatly affects | | | | company has. Management will be driven by profit |
| the earning chances of their business, outsourcing jobs | | | | from the services that these Business process |
| serve as a viable option to override such difficult | | | | outsourcing firms provide. |
| situation. | | | | As this drawback is being overshadowed by the |
| Many overseas companies are enjoying huge benefits | | | | numerous advantages that American and European |
| by off shoring some of their peripheral and none core | | | | based companies get from outsourcing, it is clear that |
| business processes to third party business process | | | | outsourcing telecommunications services and other |
| outsourcing providers that are mostly based in third | | | | business processes is rapidly developing in a |
| world countries like India and China. This whole process | | | | continuous phase. Proof of such is the wide variety of |
| allows these international companies to dedicate their | | | | offshore outsourcing services that are being offered |
| attention and resources to their core business | | | | by today offshore outsourcing service providers. |