In the present political season of 2008, offshore outsourcing — the business strategy of employing lower-paid service workers in Asian regions; like the Philippines, to carry out tasks previously done by higher-paid “in-shore” workers — has become an important issue.

This issue has struck fear in some national economies like the US, whose labor sector seem unstable due to the constant flux of jobs being outsourced.

Whether you are for or against outsourcing, economical evidence shows that outsourcing is an established way of how companies and countries can trade and do business.

Especially in old-line industries, like the clothes apparel business, the notion of outsourcing is just a new term for what they’ve been doing for generations. Many clothing designers do not make their clothes. They concentrate on marketing and design as they license others to manufacture the designs for them.

“We have partners for a lot of the software we write and that is duplicated by another East Coast manufacturer. We refer to our partners as our virtual manufacturers. I have to force this clear division. They do this. We do that. What we do here is design, marketing and selling.

“The point is there are things where we can add value and things where we can’t. Where we can’t, we let someone else do it,”

Jeffrey V. Hudson, then president of Visioneer, a company in the document communications business in July 17, 1994.

In 2003, Visioneer combined its leading scanner technology with the Xerox brand recognition, creating high-performance business scanners and imaging software solutions which received numerous awards including AIIM Best of Show in 2004 and 2005, as well as consecutive PC Magazine Editors’ Choice Awards in 2005 and 2006.

It is not only US companies who are using the advantages of outsourcing… many Asian corporations as well have transferred their operations outside their respective countries to regions whose labor pool and real estate prices are more cost-effective.

Take for example Transcosmos Inc., one of Japan’s largest customer support/care firms with 22 offices and over 20,000 employees; have invested over than USD2.5 million to expand its operations in the Philippines in order to reach a broader English market.

The Japanese company partnered with Logicall, a three-year old Philippine business process outsourcing provider with 300 seats at its lone office because, “[Transcosmos] needed a partner who has an identical sense of values and mentality to be aggressive in entering the English-speaking market. Second, the equipment and facility that Transcosmos has is almost identical to the equipment and facility that Logicall is using.”

The merger is expected should start reaping USD20 million in revenues annually by 2011.

For such gains, it is no wonder that companies are boldly forging on, using the advances in technology and communication without fear.

The well-known saying “If you want to do something right, you better do it yourself” has transformed to “If you want to do it something right, better let others who can do it best do it for you.”

Outsourcing Solutions, Inc. – your outsourcing partner!


  1. Gargan, Edward. “Virtual’ Companies Leave the Manufacturing to Others”. 17 July 1994. The New York Times Online Edition. Accessed 23 June 2008. Link here
  2. Gross, Daniel. “Why ‘Outsourcing’ May Lose Its Power as a Scare Word”. 13 August 2006. Economic View, The New York Times. Accessed 23 June 2008. Link here
  3. Lorenzo, Anna Barbara. 30 May 2008. BusinessWorld. Accessed 23 June 2008. Link here
  4. Cook, Danielle. “Visioneer Recognizes Outstanding Partners During Award Ceremony at PartnerVision 2008.” Visioneer News Room. Accessed 23 June 2008. Link here


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