If you talk about the history of outsourcing in general, it will take you back to as early as 1700’s. The primary reasons where reduction of costs. Today, you can find almost every other service being outsourced; from hardware to the most complicated software.
Comparing all other outsourced countries, the country that can be referred as the winner or the major host among outsourcing countries is India. The birth of IT and computer systems made them this. There are other countries though that followed.
While India takes the lead for engineering and technical fields, China goes for manufacturing, technical also, Mexico for manufacturing, United States for analysis and creativity and the Philippines for administrative field. All these countries are considered the leading countries for outsourcing industries.
When companies where interviewed as to why they prefer outsourcing, here are the top reasons.
- Reduce and control operating costs.
- Get free internal resources.
- Gain access to world-class capabilities.
- Share risks with a company to whom you are outsourcing with
- Focus on other important needs in the company.
There are actually a lot more to the reasons why companies opt for outsourcing. Through their success, there were issues that have been thrown against the process. Still, outsourcing is very much prevalent.
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