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To Off-shore or Not to Outsource

Author : manjot kamal

Off-shoring / Outsourcing is an in the face reality of the 21st
century, but fewer than 200,000 American jobs lost to India in a
presidential election year experiencing a low job growth has
proven highly controversial. Yet, more and more stock market
analysis to computer software development and troubleshooting
service jobs are being off-shored /
outsourced by US companies to India and other low-wage
countries. Clearly, it makes economic sense to pay middle-class
salaries rangingfrom $2,000 to $7,000 a year in these countries,
opposed to paying the same amount per month for the same work in
USA.



Responding to Colin Powell's speech pressurisingIndiato open its
markets to American goods, a thank-you for the off-shoring /
outsourcing work it receives from American companies, Hari
Singh, an Indian student retorted sharply: "Off-shoring /
Outsourcing benefits the US as well since$1 outsourced here
gives $1.40 back to the U.S. economy. We use U.S. computers to
do the work, and we're drinking Coke and Pepsi. Every damn thing
comes from the United States." A statement confirmed by the
numerous American survey companies hired to find out whether
off-shoring / outsourcing was responsible for loss of American
jobs and sluggish economy.



In perspective, off-shoring / outsourcing benefits both the
outsourcer and the provider. Outsourcing benefits include:

Increased Productivity. Cost Reduction without compromising
overall benefit goals. Reduced Employee Headcount. Access to
sophisticated technologies, and latest call centre facilities
without buying them. Tailored Vendor Offerings for Client
Specific Needs. Higher service level provisions to their
employees.

Companies lacking infrastructure and staff with little or no
interest in investing time and resources to build in-house
capability find off-shoring / outsourcing is the right choice, a
smart choice! The benefits of off-shoring / outsourcing have
immense long-term benefits if one has the foresight and patience
to invest in future paybacks. All said and done, off-shoring /
outsourcing is part of the new wave, the new world order, the
sooner one accepts it, the better!

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