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Why Outsourcing is still a Powerful Business Tool

by: Sarah Joson

Tuesday, December 18, 2012 | Outsourcing News |

Outsourcing Remains as a go-to Business Tool

Over the years, outsourcing was able to help numerous businesses all over the world. Even with the recent slowdown seen in the information technology (IT) outsourcing space, outsourcing is anticipated to remain resilient due to the following reasons posted at InformationWeek.com.

Adoption of cloud technology

There are several processes involved in outsourcing. These include network monitoring to third parties and hardware maintenance. Outsourcing enables businesses to rearrange internal structure and streamline processes, as noted in the 2012 State of IT Outsourcing survey done by InformationWeek.

Businesses can operate continuously and globally
Apart from the benefits of tapping a global-graded workforce at a lower cost, the difference in time zones helps businesses operate round the clock. For instance, call centers that need to operate 24/7 outsource to countries like India and the Philippines to cover the night shift.

Outsourcing also broadens a business’ market reach, especially for countries that are currently growing and are seen as potential markets.

Working permit and visa challenges
Foreign workers who are crucial to the operation usually have to deal with H-1B visa and employment permit issues. These things usually take time to process and are difficult to come by since only 65,000 are allowed each year.  This is simplified by outsourcing work overseas.

Skills mismatch
Some positions are often difficult to fill, specifically the ones related to information technology. There are job openings, but candidates usually do not have the skills needed for those positions. Other emerging markets deal with mobile technology, big data analysis, and online processes. Unless there’s an upsurge of skilled workers, businesses will rely on available talent in other countries.

Lessen expenses

Transferring work to offshore outsourcing destinations that are experiencing vast economic growth is still highly considered by major companies as labor rates are relatively lower. Labor arbitrage is highly considered for high-valued services such as engineering and programming.

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