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Why Stay Here When You Can Outsource Offshore?

Companies specializing in ITBangalore, there are 100,000 workers
(Information Technology) areworking on software development, chip
increasingly turning to outsourcingmanufacturing, computer operating
their labor to developing countries insystems, etc. Even though these
Latin America, Africa, Asia and theemployees make less than $7 per hour,
MidEast. The reason is reduction ofthey are highly trained IT
labor costs, which can be as much as 50%professionals. Outsourcing such as this
lower in these developing regions thanbenefits the economy of the advanced
in a fully developed nation.country in cost savings, as well as the
Companies that have specialized ineconomy of the developing country by
Business Process Outsourcing (BPO) haveadding income.
found that their systems lend themselvesThe entire IT industry is a rapidly
perfectly to many segments of ITchanging one. Outsourcing companies that
services. These services include thedeal with IT projects must work at
development and testing of software,staying on top of all new developments
data entry, data processing and helpin IT technology. This requires
desk support. The IT company located inconstant training and re-training,
the offshore country will hire highlysometimes at the headquarters of the
trained and expert professionals who arecompany that hired them. Business
able to develop software in .NET, JavaPRocess Outsourcers make sure to hire
J2EE, telecommunications applications,their employees from a highly qualified,
database solutions and smartcardEnglish fluent labor pool, and maintain
solutions, just to name a few. Theand upgrade their training on a constant
engineers and other professionals whobasis.
perform these duties can either be fullIn order to compete in a global economy,
time employees of the offshore company,IT companies must outsource to stay
who move from product to productalive. If a company chooses not to
depending on which customers theoutsource for political reasons or
outsourcing firm has, or they themselvessupposed loyalty to their country, they
may be hired on a contractual basis.are making a grave mistake. They
It is not only large IT companies withessentially are choosing to take on more
sizeable projects that turn toexpenses then their competitors and in
outsourcing as a cost effectiveturn may be driven out of business.
solution. Small, individual IT jobs canThis is particularly true in slim margin
also be outsourced to an ITbusinesses. What would be worse for
professional. India is by far the mosttheir country, a company with a certain
popular destination for outsourced ITpercent of employees offshore or no
demand, especially from the Unitedcompany at all?
States. In one city in India alone,



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