Sunday, March 6, 2011

US: Outsourcing factors....

India would not have been the outsourcing destination if there were no one to offer them work. Of which US is the biggest customer with maximum work coming from US companies. So it becomes quite obvious to look into the reasons for such high rate of outsourcing.

One of the biggest factor which made outsourcing easier is the Internet. With the 2003 being declared as the year of broadband with the advancement in telecommunication companies were able to look for outsourcing business processes which were not possible earlier.

Internet spread around the globe like a wild fire. It provided the much needed connectivity between the customer and service provider who are in different continent altogether. It enabled the outsourcing parties to share document in real time, which eliminated some of the risks associated with outsourcing.

One of the biggest hindrance to outsourcing was the security threat. outsourcing companies were very concerned about the security of their data in the outsourced destination. And with most of the companies were involved in virtual business transactions this was a big concern. With the technological advancement and many security and access features installed in all the transactions and systems outsourcing was preferred over in-house operations.

There was always the business need and desire of outsourcing in a competitive market such as US from the beginning. And with the above factors facilitating the process US with its competitive market became the biggest customer of outsourcing.

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