In a recent survey on the outcome of outsourcing, 80% of the respondents claimed that outsourcing had improved their competitive advantage in their market place. A further 87% said that their internal processes had improved since they began outsourcing and finally 77% said that their costs had substantially dropped since they moved work offshore. All this reveals on simple truth. Offshore outsourcing is here to stay. The question is where will it be.
Originally when offshore outsourcing began, India and China were the ideal destinations – India because of its large population of English speaking people and China for their computer skills. Both nations enjoyed a substantially lower labor cost than the leading developed nations. However over time, while the skills in both countries have continued to develop and strengthen, labor cost has increased. Many have said that it is only a matter of time before the cost arbitrage that got outsourcing started in the first place will cease to exist as normalization occurs.
That doesn’t mean that outsourcing will stop. It just means that newer cheaper locations will be used. From an employment perspective, if you are willing to travel then this career could be a long and lucrative one. Any company choosing to move their work overseas would be thrilled if staff members wanted to move with the process. Consequently, don’t assume that if outsourcing leaves the country in which you are residing, you will lose out on your career. You will be encouraged if not enticed into traveling with the process, a move that is usually beneficial for all involved.
However this is a long way off. Current projections show that India, a country, which currently employs 800,000 outsourcing employees, will increase this figure to 2 million jobs over the next five years. Things are certain to get better before they get worse, so this is the time to jump on the bandwagon and build your experience.
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