In: Categories » Business » Ethics and presentation » Outsourcing
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Outsourcing literally means sourcing from outside. It refers to a business strategy where a company takes advantage of professional organizations to accomplish its specific tasks, instead of performing them by itself. Outsourcing is the product of daily-increasing competition in business, especially in the high demand for technological professionals. Most people may still regard outsourcing as labor outsourcing in the traditional sense. However, in the globalized environment, outsourcing is already much more than that. Nowadays, more and more techniques and knowledge contents are involved in outsourcing and it has turned out to be a global trend in all fields, adding more vitality to businesses. With the help of outsourcing, companies are able to focus on the core business while having the minor parts taken care of by outside experts. Therefore, lots of spared resources and energy can be utilized to solve important and large-scale projects. Generally, the specialized company that handles the outsourcing work is professional and streamlined. Outsourcing can reduce resource costs, improve work efficiency, and enhance company competitiveness as well as guarantee quality. Moreover, with the support of outsourcing services, enterprises can overcome time-zone differences, improve cost effectiveness, and achieve more profits, especially in the fields which require extra manpower and skills. Cost-cutting may not be the only reason for those companies to seek outsourcers, but it is definitely one of the major factors. Outsourcing converts fixed costs into flexible costs so that a company can release capital for investment in other businesses. So, if a company is planning to expand business for good measure, outsourcing could be an alternative to build up foundations in other countries. Usually outsourcing suppliers are from developing countries, such as India, the Philippines, and China, which have low-cost labor. For instance, a lot of World Top 500 companies adopt outsourcing in their business strategies these days. These companies are open to allocating internet resources from other countries in order to maximize profits. They look for productive and reliable providers to get work done faster and better. Besides, more and more small and medium firms in the United States and Europe grab the chance of recruiting foreign talent in the new trend of technology development. They see the market of technical talents in developing countries and take advantage of the lower cost while maintaining the same performance. China and other developing countries benefit a lot from outsourcing, and have many opportunities to shape the IT industry in the globalized business environment. Though most people think that the recent rapid growth of China's manufacturing industry is largely based on cheap labor, China is ambitiously seeking new competitive advantages in manufacturing, trying its best to transform the “made in China” identity into a “designed in China” identity. Compared with traditional manufacturing industries, the outsourcing services occupy less time and space, and largely rely on human resources and the industrial environment. It is noted that China possesses a developed manufacturing market for talents in all walks of life on demand, including many overseas top Chinese professionals. In addition, with the development of software and information technology, China paves the way for the growth of outsourcing services. For instance, Worksoft Creative Software Technology Ltd., founded in 1995, is the leading China-based provider of IT outsourcing services to Asia-Pacific, North American and European clients as well as multinationals in China. It offers expertise in a wide range of fields from high-tech manufacturing to telecommunications, etc. Their client roster includes Microsoft, IBM, Oracle, NEC, Nokia, HP, TIBCO, and many other leading Fortune 1000 companies. Surely, there are many other companies specializing in outsourcing services for small and medium enterprises, especially in software and information outsourcing services in China, and Web Outsourcing Services Group is devoted to providing quality web & design outsourcing services to clients all around the world. The outsourcing service emerged with the development of the global market, and it is a win-win business model. It benefits both the outsourcing suppliers and their clients. With the costs saved, companies can pay more attention to their core business, can reduce operating costs and have more opportunities to explore new markets. The current value of the global outsourcing services market is approximately between US$300 and US$500 billion. It is estimated that, by 2008, the value of the market will exceed US$1 trillion. In this “flat world”, every smart brain is accessible.
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