Jan

25

Outsourcing makes a comeback this 2010, according to a new PricewaterhouseCoopers study.

In the past six month, outsourcing has accelerated due to the driving need to cut costs (still the trigger, still the main focus) in labor through captive facilities or third-party service providers in cost-friendly near-shore/off-shore destinations such as India and the Philippines.

As the list of what can be outsourced grows; from application to infrastructure support, finance and accounting, human resources management and legal services, much of the recent demand is driven by competitors trying to head-off business leaders who slashed their costs, prior to the downturn.

Face Forward to Future

You could say it’s a 180-degree turn forward from what has happened in the last two years where as companies would rather kill jobs rather than just send them off near-shore/off-shore due to maybe fear of backlash on outsourcing.

Speaking of backlash, leading IT companies in India is making their presence felt on Capitol Hill in the United States by hiring American lobbyists and their firms to cull support and favorable public policy on the delicate issues, such as immigration and off-shore outsourcing.

I believe they have their work cut out for them, served extra-large. Could only wish them the best of luck.

References:

  1. Sperling, Ed. “Digital Frontlines: Outsourcing makes a Comeback.” 25 January 2010. FORBES. Accessed 25 january 2010. Link Here
  2. Mishra, Pankaj. “IT companies hire lobbyists to deal with anti-offshoring sentiment in US.” 25 January 2010. Economic Times of India. Accessed 25 January 2010. Link Here

 

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