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Information Technology
Joined: July 2013
Posts: 4
Posted: July 29, 2013 11:58 AM

Asian countries have become a platform for the western countries with outsourcing as the input provided but the question is still to be answered whether it is really working as a beneficiary model for Asian countries or is it that it is more of a human outsourcing which would be erasing the skilled manpower from the nation's portfolio?

Information Technology
Joined: April 2012
Posts: 17
Posted: July 30, 2013 9:52 AM

RE: Is outsourcing helping the IT Companies
Thank you for your question. I want to make sure I understand your question fully. Are you asking about the impact on the Asian workforce or the Western workforce?

Here are some things to consider for any company who is outsourcing services, whether it be traditional customer service or IT support.

Every outsourcing decision is unique. Whether it be a cost issue or timezone requirement, giving up the customer interface can become a slippery slope. It looks good on paper and it looks great when you get started, but without extensive continuous management and training, it is difficult to control.

The companies that outsource services, whether they be in Asia or in lower cost Eastern European zones, have very favorable setups. They establish groups of employees that mimic the western companies they represent. They decorate their areas, dress as employee representatives and utilize the computer interface from the represented western company. They also spend a great deal of time on establishing training programs along with their western counterpart. It is very appealing and gives the western business partner a feeling of comfort.

Problems occur when change occurs. There is a high turnover rate in the service centers, there are also continuous changes that occur within the western company's product and service portfolio. It is difficult to maintain quality of service levels, and by the time the western partner figures this out, it may be too late. In order to avoid this slippery slope, the western company must stay fully engaged, at all times facilitating and managing the service.

Regarding outsourcing human capital and its negative impact on the host nation. There is a balance that takes place as individuals learn. Although the Asian workforce has technical skills, they are learning from western countries how to apply them in different parts of the world. Without that sharing of knowledge and training that takes place with partnership engagements, the workforce is limited. That old saying "Knowledge is Power" holds true in this case. Holding onto knowledge does not give you power, learning new ways of applying knowledge and continuously developing skills, does give you an advantage.

The reality is that skilled manpower will gravitate toward the best opportunity. If that opportunity exists within the nation's portfolio, it will be utilized there. Many western companies have moved their outsourced services back to their own countries for that very reason.

Information Technology
Joined: August 2020
Posts: 1
Posted: August 31, 2020 4:02 AM

RE: Is outsourcing helping the IT Companies
Outsourcing is usually a decision to cut costs or focus on the main tasks. However, lowering costs is the main reason as most of our companies outsource jobs to other countries where costs of production is much lower. The highest cost companies face is labor, which is much cheaper in other coutries. An outsourcing company is self-employed, and provides professional administrative, technical, or creative assistance to clients remotely from a home office. Learn more about IT BPO here: https://www.offshorebusinessprocessing.com/it-solutions
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