Outsourcing in a Recession
With US economy being down in the dumps, Outsourcing has flourished like never before. With several US employees losing their jobs on a daily basis owing to recession, getting work done through employees remotely seems like a wise move. Outsourcing primarily involves using online technologies in pursuit of building viable service delivery business that can be run from virtually anywhere in the world. Over the years, it has been established that India is a pool of talent and resource. Outsourcing especially to India has been a winning tactic during recession because of availability of talent at much lower cost.
On macro level, outsourcing offers the following evident benefits:
Cost Savings : Given the currency exchange rates and standard of wages , it is always cost effective for the US employers to get work done remotely from India or other developing nation.
Focus on Core business: With outsourcing, employees are working from remote areas and therefore the company can focus on improving the core business without having to worry about other areas.
Access to talent and knowledge: Outsourcing allows access to a larger talent pool, intellectual property and expertise across the globe and a sustainable source of skills, especially in science and engineering.
Room for innovation and change: Outsourcing acts as a catalyst and brings about change in the working scenario of the company. External knowledge supplements the limited in-house business acumen, thereby accelerating innovation.
Tax Benefit: In outsourcing, a major trend is that countries get offered tax incentives to move manufacturing operations to counter high corporate taxes within another country.
Reduce time to market: Time needed for marketing the product or service reduces substantially.