Why Stay Here When You Can Outsource Offshore?

Companies specializing in IT (Information Technology)States. In one city in India alone, Bangalore, there are
are increasingly turning to outsourcing their labor to100,000 workers working on software development,
developing countries in Latin America, Africa, Asia andchip manufacturing, computer operating systems, etc.
the MidEast. The reason is reduction of labor costs,Even though these employees make less than $7 per
which can be as much as 50% lower in thesehour, they are highly trained IT professionals.
developing regions than in a fully developed nation.Outsourcing such as this benefits the economy of the
Companies that have specialized in Business Processadvanced country in cost savings, as well as the
Outsourcing (BPO) have found that their systems lendeconomy of the developing country by adding income.
themselves perfectly to many segments of ITThe entire IT industry is a rapidly changing one.
services. These services include the development andOutsourcing companies that deal with IT projects must
testing of software, data entry, data processing andwork at staying on top of all new developments in IT
help desk support. The IT company located in thetechnology. This requires constant training and
offshore country will hire highly trained and expertre-training, sometimes at the headquarters of the
professionals who are able to develop software incompany that hired them. Business PRocess
.NET, Java/J2EE, telecommunications applications,Outsourcers make sure to hire their employees from a
database solutions and smartcard solutions, just tohighly qualified, English fluent labor pool, and maintain
name a few. The engineers and other professionalsand upgrade their training on a constant basis.
who perform these duties can either be full timeIn order to compete in a global economy, IT companies
employees of the offshore company, who move frommust outsource to stay alive. If a company chooses
product to product depending on which customers thenot to outsource for political reasons or supposed
outsourcing firm has, or they themselves may be hiredloyalty to their country, they are making a grave
on a contractual basis.mistake. They essentially are choosing to take on
It is not only large IT companies with sizeable projectsmore expenses then their competitors and in turn may
that turn to outsourcing as a cost effective solution.be driven out of business. This is particularly true in slim
Small, individual IT jobs can also be outsourced to an ITmargin businesses. What would be worse for their
professional. India is by far the most popular destinationcountry, a company with a certain percent of
for outsourced IT demand, especially from the Unitedemployees offshore or no company at all?