Outsourcing was developed after certain uncomplicated software programs were outsourced to underdeveloped countries such as India. The first things outsourced were call centers and back office jobs.

The financial benefits of first time “outsourcing” were appreciated by all. According to surveys it was conducted the maximum number of clients outsourcing are from USA and UK.

Basically outsourcing and offshoring are two faces of same coin. Outsourcing means getting jobs done and services provided by the workers of third countries where as offshoring means similar services are obtained by the way of hiring low cost dedicated professionals from third country.

It’s a very heated debate is going on about advantages and disadvantages of outsourcing. The benefits of outsourcing are known to everyone and most firms are thinking of doing it to gain supportive workforce, reduce cost, extended working hours, knowledge sharing and many more advantages.

Many companies have already outsourced and many others are planning to do so. It will all depend on lots of factors. Everyone knows that each situation has its own merits and demerits.

The biggest demerit of outsourcing is that lot of ST professionals are loosing their jobs and students in American have lost interest in pursuing studies to IT related fields because of shrinking job market.

Now this is very volatile issue as being the biggest democracy the people there are able to make their voice heard. Reduce jobs will mean reduce income tax and state taxes. It will lead to outflow of capital to outsource service provider countries.

Some people are even concerned that outsourcing may lead leadership of world slipping from USA’s hand. As far as they concerned outsourcing of highly technical jobs and many other jobs will pass on serious security data’s and the technical know how to service provider countries.

High learning curve, communication gap and lack of understanding are still haunting outsourcer company. It’s obvious that third country workers will have lack of understanding about work culture of employer. Even people with solid skills found missing the core values of employers. This is something one cannot learn sitting on a remote location.

Another point on which people are worried is export of personal data which may include credit card or med claim information etc. In USA there are very stringent laws which protect person’s personal data. But with outsourcing people will become dependant on laws of third world countries. All these demerits may force the institutions involved to develop new rules to prevent any loss of personal data.

Related article: Outsourcing Services to India, A cause for worry?

However in spite of all these demerits the firms are hell-bent upon outsourcing because they get a steady source of workforce and save huge cost.

But this is a way competitive world. No matter what people might say the companies are going to engage only those firms and only from those countries which have infrastructure and skilled manpower to do the job.

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