Will Medium Sized Firms Outsource More Jobs Overseas?
Friday January 2, 2009
We have all experienced calling a customer service or reservations department and find we are talking to someone in India or the Far East. But this has usually been when we have called a large national or international company. As the US economy tightens and traditionally medium sized companies are required to find new ways to reduce costs, increasing numbers of foreign based outsourcing companies will be offering these businesses a solution.
A recent article detailed how a medium sized US company was outsourcing parts of its procurement process to an Indian research company who offered greater flexibility than in-house employees, at a lower cost. If the US economy continues to be depressed, the pressure on medium sized businesses to reduce costs becomes every greater. Companies in this situation will inevitably consider outsourcing their business processes overseas to survive the latest downturn.
A recent article detailed how a medium sized US company was outsourcing parts of its procurement process to an Indian research company who offered greater flexibility than in-house employees, at a lower cost. If the US economy continues to be depressed, the pressure on medium sized businesses to reduce costs becomes every greater. Companies in this situation will inevitably consider outsourcing their business processes overseas to survive the latest downturn.
Comments
It is sad to contemplate, but as unfortunate as it may sound, it is a sign of the times. As more companies are forced to reduce their headcount, yet maintain the service their customers demand, outsourced services will increase. The business should go to the company that can provide the best service at the lowest cost. This is not what happens in some cases. All too often, the level of service suffers because customers are dealing with voices overseas, and much is lost to a lack of communication, and understanding of cultures.