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Is Outsourcing Work Good For Western Countries?

Discussion in 'Ideas, Suggestions & Business Tips' started by markadward, Apr 12, 2017.

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    markadward

    markadward Freshman

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    [​IMG]

    In the past, sometimes I got people saying nasty things to me like:
    “Stop taking our jobs you piece of s****! ”


    What was once a great idea, Outsourcing work has now become a controversial topic. Whether it is about outsourcing manufacturing to China, outsourcing garments to Bangladesh or outsourcing IT work to India, the world has come to realize outsourcing does have its side effects, whilst offering the immense benefits.

    I run a small outsourcing operation out of Bangladesh (by sitting at my desk in London). My focus is mainly on Admin and IT work, and I firmly believe I am helping my clients grow their businesses whilst keeping their overheads as reasonably low as possible.


    You do see a lot of negative news surrounding outsourcing, and virtual staffing on the internet, and it does seem like most of the western world feel bitter about outsourcing. However, most of the time when I am speaking to companies, people are very keen on outsourcing work and I am drawn to the conclusion that most do still favor outsourcing.


    [​IMG]
    I appreciate why many are bitter about the idea of outsourcing. The typical scenario that comes to mind is the dreaded call center guy answering your call from India and driving you mad. This was demonstrated wonderfully in one of the Transformer Movies – where a soldier tries to call his headquarters whilst on the battlefield fighting alien robots – only to have his call intercepted by an Indian guy asking irrelevant questions and trying to upsell!


    But let’s take a look at the world of freelancing for instance. Big giants like freelancer.com and upwork.com are making history with millions of companies outsourcing work to freelancers – who primary tend to be from Asia and the Far East. Is this very different to outsourcing your work to a dedicated outsourcing company like MyVirtualPeople.com? Or is it just the same thing, done with a different name ‘hiring freelancers’? You are in fact outsourcing the work, and hiring what you can call a ‘temporary virtual staff’.
    [​IMG]

    I think people against outsourcing work have missed something. Outsourcing is not about taking away jobs. Outsourcing is a mutual benefit to both parties.

    Companies outsource work to remain competitive and maintain strong margins. Would you rather a company struggles to cut its costs and survive and eventually shut down the entire company? Or would you rather they find ways to keep a business going by outsourcing the work, and save hundreds and thousands of jobs that would otherwise be lost?

    Indeed some jobs will be lost – this is where the offshore virtual staff benefits, they get jobs that would probably have never existed for them. But the troubled company has also benefited, and so have most employees of the troubled company who have been fortunate to keep their jobs.

    Outsourcing is never really permanent. When the economic climate is better for the company, they are free to bring all the jobs back home (should they choose to do so).

    Consider the 2008 – 2011 recession. How many large companies went bust due to poor financials? We hear about the big guys in the media, what about the thousands of small and medium-sized companies that went bust that we never hear of? Would it not have been better to find a way for most of these companies to survive by outsourcing? Could the companies not have brought the jobs back home when the economic climate improved? I shall let you be the judge of this.


    I am sure we all have our opinions on outsourcing, so I’d like to invite you to share your comments and thoughts on outsourcing. Share your experiences if you have outsourced! The good and the bad.


     
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    PaulineGreening

    PaulineGreening Applicant

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    I do see it as a great way for western businesses to save on cost especially if the task doesn't require physical work.
     
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    RLora254

    RLora254 Applicant

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    Well, I've always though outsourcing was a good option.
     
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    Srialto

    Srialto Srialto - Online Service Marketplace

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    Yes, outsourcing is a very good option and it have many benefits like-
    Control Capital cost
    Increase efficiency
    Reduce labor cost
    Start new projects quickly
    Focus on your core business
    Reduce risk.
     
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    Jess_8

    Jess_8 Applicant

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    It is a good thing for sure! It has very few disadvantages. The positives are the increase of profits and the opportunity cost of creating a new products or service. Also, you can save some time, if you outsource the less important tasks, so that you have more time for the tasks with higher value. You can also make better connections with international companies, as well as the supply for jobs that can help the less developed countries. Overall, outsourcing is a great well to develop your company and your country as well. (y)
     
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    quadrapay

    quadrapay Applicant

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    It helps companies save money but in long-term creates a massive risk of data leaks and deteriorating service.
     
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    vitaltelcom

    vitaltelcom Hosted Pbx System

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    It is very beneficial. This needs to be done with very much care and importantly with safety.
     
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    Julia Sta Romana

    Julia Sta Romana Full-time mom, part-time superhero

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    Yes, it is. It helps reduce their costs and allows them to sell their products and services at a cheaper rate.
     
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    Whitedesk

    Whitedesk Freshman

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    I presume outsourcing will be good and beneficial to western countries.
     
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    Natasha Simmons

    Natasha Simmons Applicant

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    As long as you take care when doing it
     

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