How is the outsourcing landscape transforming?

The outsourcing landscape and terrain is evolving as we speak. But, is it changing for the better? There are several factors to consider.

(1) Outsourcing providers are gaining skill at fulfilling their customers’ needs as the industry matures.

(2) There are more companies out there in more countries competing for outsourcing revenue giving the customer more choices.

(3) Rules and laws concerning outsourcing will continue to change. Obama might make it more difficult to outsource which could cause a huge disruption in the market. Regulation in the United States for example could cause a decrease in outsourcing.

(4) More companies are expected to take an interest in outsourcing as time goes on and the overall industry is growing worldwide.

Politicians often talk about protecting American jobs by regulating outsourcing. However, by protecting American jobs you are shooting other American companies in the foot who need services. If you cannot find quality services in the United States for an affordable price, you are forced to outsource overseas. But, if there are laws restricting overseas outsourcing, American companies doing the hiring will suffer and their overall growth will be dampered. Job protection helps those with jobs but harms businesses and end-consumers.

India’s situation
India is famous for outsourcing. But, unfortunately due to the negligent behavior of managers and poor service at many companies, the market is turning away from India for a lot of outsourcing services. Eastern Europe is taking over a lot of the programming outsourcing while the Philippines has drained more than two-thirds of India’s former call center revenue. India is still #1 in the outsourcing world, but if their sloppy unprofessional behavior continues, they are likely to continue sliding downhill in the outsourcing world as other countries gain ground.

As technology continues to evolve, and human culture adapts to the evolution, we will see an increasingly mobile workforce and more remote workers who are likely to be outsourced from foreign countries. Cloud technology is a very common type of technology which aids mobility. You can access your information from an i-phone on a desert island with the cloud and conduct your meetings from a pool overlooking the ocean there if you desire!

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