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Growth of offshore outsourcing and small business

By BloggerKhan

My profession is Management and Marketing and it revolves around outsourcing, ecommerce and marketing on the internet. Wise men say identify what you are passionate about and then see if ...

By BloggerKhan

Posted in | Tags : , ,

Offshore outsourcing refers to moving jobs from high wage countries to lower
wage countries. Some companies outsource entire departments while others follow
a more scaled down version. They have a team lead in their home office and his
team is offshore, at times spread across several countries. They meet via web
conferencing and they follow odd work hours but human beings are very adaptable
and work gets done – at a lower cost and at times in a more timely manner.

Language is a key issue in offshore outsourcing of white collar jobs. While
China is the king of manufacturing jobs, it doesn’t do too well in offshore
outsourcing of office jobs as their work force is not that good at English. The
lead countries in office jobs outsourcing are the former British colonies like
Pakistan and India and the former American colony of the Philippines. Some of
the Eastern European countries have also started coming strongly in this area
especially in IT related jobs.

The most active countries in seeking offshore outsourcing are:

  1. USA
  2. Canada
  3. UK
  4. Australia
  5. Germany

Countries that are the biggest recipients of offshore outsourcing are:

  1. India
  2. Pakistan
  3. Russia
  4. Ukraine
  5. USA – surprised?

Did USA surprise you? It’s a two way street. Work flows both ways and many a
people in other countries are seeking contractors in USA to establish a local
connection or for skills that are more abundant in USA. Also, a lot of people in
the USA who are not able to work during normal office hours see freelance work.
They are home bound for various reasons but can spare a few hours a day to work
and as long as that work can be done remotely, they are willing.

offshore outsourcing,

Infographic courtesy of Elance.

offshore outsourcing,

Infographic courtesy of Elance.

Please note these infographics are related to outsourcing by smaller
companies and the self employed. Large corporations have their own centers
overseas and continue to grow their global presence.

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