Jun
21
The aspect of outsourcing back office functions and skilled jobs of American businesses to low-cost regions in Asia; like the Philippines, have been frowned upon in the United States.
What is not often realized is that outsourcing can be greatly beneficial, not only to the United States economy but to the entire world economy.
First, with lower liabilities in hiring qualified personnel and owning facilities, the outsourcing solution make American businesses profitable which benefits the consumers.
This is part of evolution of the economic principle of minimizing costs, maximizing value and generating continuous profit. It is in any business company’s best interest and their responsibility to seek out lower-cost producer of goods or service provider in order to create more quality and value to their customers and earn profit for their shareholders.
Second, by outsourcing labor-intensive tasks; such as word-processing, archiving, research, analysis, hiring and training to those who can do it efficiently, American companies can concentrate in creating, refining and innovating their processes and business strategies to provide more quality products and services to their customers, thus improve their position in their marketplace.
Third, the outsourcing solution is a trend towards global interdependency in which every country can be competitive which can lead to progress and cooperation.
Outsourcing powers the world through a dynamic environment of reduced costs, quality improvement, competition, cooperation and innovation.
Start up firms and medium-sized companies can channel this power and use it to their advantage to be fully operational with modern strategies and skilled professionals working devotedly to achieve business goals for the company’s success, even from halfway around the globe.
One example is the Japanese company Toei Animation, producers of the highly popular Dragon Ball Z series and other animation films. While art direction and key animation is handled in Japan, 38 percent of its workforce is employed in the Philippines to do coloring, background and camera tasks. Once the animation films are done, the company relies on US-based distributors to promote their products not only to the American market but to other markets.
This is a classic case of acquiring the best of what the world’s human resources can offer, outsourcing to them wherever they are.
References:
- Holsten, William J. “Outsourcing as a Sign of Strength” 24 April 2005. The New York Times Online. 24 June 2008. Link here
- “Executive Interview: Tom Donohue, U.S. Chamber of Commerce on outsourcing and offshoring” August 2007. Venture Outsource. 25 June 2008. Link here
- “Japanese animation film producers Toei Animation to outsource to Philippines” 12 October 2005. Outsourcing Times. 25 June 2008. Link here
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