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Why Stay Here When You Can Outsource Offshore?

Companies specializing in IT (Information alone, Bangalore, there are 100,000
Technology) are increasingly turning to workers working on software development,
outsourcing their labor to developing chip manufacturing, computer operating
countries in Latin America, Africa, Asia systems, etc. Even though these
and the MidEast. The reason is reduction employees make less than $7 per hour,
of labor costs, which can be as much as they are highly trained IT professionals.
50% lower in these developing regions Outsourcing such as this benefits the
than in a fully developed nation. economy of the advanced country in cost
Companies that have specialized in savings, as well as the economy of the
Business Process Outsourcing (BPO) have developing country by adding income.
found that their systems lend themselves The entire IT industry is a rapidly
perfectly to many segments of IT changing one. Outsourcing companies that
services. These services include the deal with IT projects must work at
development and testing of software, data staying on top of all new developments in
entry, data processing and help desk IT technology. This requires constant
support. The IT company located in the training and re-training, sometimes at
offshore country will hire highly trained the headquarters of the company that
and expert professionals who are able to hired them. Business PRocess Outsourcers
develop software in .NET, Java/J2EE, make sure to hire their employees from a
telecommunications applications, database highly qualified, English fluent labor
solutions and smartcard solutions, just pool, and maintain and upgrade their
to name a few. The engineers and other training on a constant basis.
professionals who perform these duties In order to compete in a global economy,
can either be full time employees of the IT companies must outsource to stay
offshore company, who move from product alive. If a company chooses not to
to product depending on which customers outsource for political reasons or
the outsourcing firm has, or they supposed loyalty to their country, they
themselves may be hired on a contractual are making a grave mistake. They
basis. essentially are choosing to take on more
It is not only large IT companies with expenses then their competitors and in
sizeable projects that turn to turn may be driven out of business. This
outsourcing as a cost effective solution. is particularly true in slim margin
Small, individual IT jobs can also be businesses. What would be worse for
outsourced to an IT professional. India their country, a company with a certain
is by far the most popular destination percent of employees offshore or no
for outsourced IT demand, especially from company at all?
the United States. In one city in India




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