Outsourcing

Outsourcing is another way of obtaining goods or services from outside of the organization.

The best example of an outsourcing today is the BPO or the business process outsourcing. BPO works by obtaining services to the other contract entity. Companies go to outsourcing for the benefits of much cheaper or less expensive of business operations.
The business process outsourcing is the rapidly growing trend in the business industry today. It is commonly observe in the northern America, Europe, Asia and Australia. BPO works by having part of the business process to be processed by the other third party company. This third party company or organization is could be in the original country or from the different country.

One of the common work that being outsourced today is the call center job or other back office works. If you leave in America or other European countries and you somehow use your phone to contact any customer service, don’t get surprise if you might hear a different accent of the operator. Because your call are transfer from different countries such as India and Philippines.

By the use of the new technology the outsourcing is now done easily. The company which is miles away from the outsource company can simultaneously operates the business.  The companies are miles away and has their own different day time and this makes the company to run the business in twenty four hours per week.
BPO produce high profit of revenue to the business with little expense. However this also create issues to the economy. For example a utility company in Canada has a call center department which employs local resident but this company choose to outsource its call center department to other country. Now the call center department is now transferred to the country and employed local residents which the salary is much more cheaper.

After the outsourcing the results are: The former call center workers in Canada are now unemployed, it created new job in the outsourced country and the company earns more revenue while maintaining a very less expensive operation in the outsourced country.

It is clearly that the outsourcing practice has the positive and negative impact in the company, people and country. It drastically shaping the world of business today. After reading the cited effect of outsourcing which side you are?