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How Outsourcing Started

Submitted by on February 5, 2010 – 4:38 pmNo Comment

image credit://computerwoche

During the early 90s, companies were looking for new business models to adopt in view of the developments and changes in the world market.  In view of the looming financial difficulties that abound them, multinational companies resorted to low-cost locations where they would conduct their operations.  These destinations include India and the Philippines.  Apparently, setting up bases in offshore locations significantly reduced the operating costs and a corresponding increase in profits for these companies.

The outsourcing phenomenon quickly took flight as many companies realized the advantages, as well as the need to resort to it in view of the impending global financial crisis.  Majority of the workload outsourced by these multinational companies involve customer support, telemarketing and technical support.

Subsequently, the trend evolved that even freelancers are now engaged to perform work outsourced from companies to individuals alike.  This type of outsourcing enabled small and medium businesses to take advantage of the benefits of outsourcing.  The usual outsourced jobs to freelancers would include content writing, web design, programming and software development.

At present, India is being regarded as the top outsourcing destination.  A close second is the Philippines.  However, due to the increasing salary rates in India, multinational companies as well as certain individuals are pulling out their outsourced jobs.  Naturally, the tendency is to go to an alternative, which is the Philippines.

The Philippines is home to a lot of talented and skilled individuals who are trainable.  In addition, English is a widely-spoken language in the country; hence, language is not a barrier.  Moreover, Filipinos are exposed to the culture, style and trends of Western countries.

Visit Outsourcing Truths and discover the benefits of outsourcing.

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