Тематичний напрям
1.Сучасна
економічна система та тенденції її розвитку на початку третього тисячоліття.
Трохимець Інна
Іванівна
Студентка
освітньо-кваліфікаційного напряму
підготовки
«Магістр адміністративного
менеджменту», НТУУ «КПІ»
OUTSOURCING IMPACT ON BUSINESS PROCESSES IN XXI CENTURY
Nowadays
many highly-developed Western companies experiencing strong concurrence under
the circumstances of globalization decide to offshore IT-related processes to
developing countries. Doing businesses in the international arena is a great
possibility for enterprises to access foreign resources through the business
cooperation and outsourcing is the optimal decision to minimize risks and cut
down the costs. That is why, for the last 20 years outsourcing is a win-win
situation both for the growing countries and huge manufacturing brands and is
successfully implemented in the international business process.
In the 21st
century, successful US companies racing for the higher revenues and growth of
their businesses in the market are looking for the ways of how to reduce costs
for production and human resources. Due to the increasing salary rates and
staff demands in the countries of the Group of Seven, a large part of the
company’s budget usually falls on the costs for the personnel- hiring,
training, and compensations in particular. To minimize the costs and find
proficient employees, CEO’s and shareholders are facing the need to transfer
technology and engineering-related tasks to the developing countries of
industrial economies and sufficient human resources. This occurrence was called
“outsourcing” and firstly it was applied by the huge manufacturing brands for
when they decided to facilitate their production forces to the South-Eastern
Asia.
Nowadays
the term “outsourcing” is widely used in business sphere and it seems like a
solution for the companies to optimize the workload focusing on their main
goals while non - regular or specific tasks are given under the responsibility
of the professional subsidiaries. Such a cooperative technology represents the
consequences of the world globalization when long distances and language
barriers does not present a problem anymore, and business can be done despite
the cultural peculiarities. Statistics show that outsourcing is applied in
various spheres from 53% in manufacturing to 43% in IT sector. These types of
work are completely different, but in both cases most of the companies aim to
reduce costs transferring special types of work to the third companies.
Speaking
about IT-outsourcing, this phenomenon appears in 1980’s when highly-developed
US and Western-European companies searching for the new sources of the
technical staff discover India. Known for the huge percentage of the
degree-holding technical staff and comparatively lower then US salaries, India
becomes number one outsourcing country for US technology developing market.
From the mid 2000’s, actually begins Western expansion of the Indian IT- labor market,
continuing till now. The biggest hardware and software manufacturers start to
hire Indian technicians to work on the US IT projects. Vijay V. Bhat,
Mechanical Engineer and MBA from Symbiosis Center, analyzing the situation,
says that “India has an edge because you have
decent quality English speaking people who are willing to do routine work
("Grunt Work") at a highly competitive price. As long as it maintains
that edge, remains consistent and predictable, India has a place as the
Software backyard and the BackOffice of the world. A large IT Manpower pool and
dominance of English in higher education system only helps to build India as a
preferred choice for "Offshoring" (India as an Offshoring
Destination: A Historical Perspective, 2005). The list of IT giants that had
found the solution in outsourcing includes Oracle, Dell Computer Support,
Hewlett-Packard, AT&T Wireless and, and the major segments that are
outsourced now are system development, maintenance of legacy system and
e-commerce customer support. The government of India, realizing the potential
of such cooperation, offers a tax friendly environment and even has a separate
Ministry of Information Technology to look into IT related matters. Now, India
is #1 top-rated outsourcing country with the total workforce of 1,430,000,000
having 26% of CFO’s rating as the most preferable outsourcing partner. Indian
example is now successfully copied by the countries of South-Eastern Asia
having the huge technology background – China, Philippines, Thailand and also
such Eastern-European countries like Bulgaria, Hungary and Ukraine [2].
To sum it up, outsourcing is rational business
solution for the companies to minimize costs and for developing countries with
technical IT background outsourcing is the solution to attract western
investments and strengthen their economy. Outsourcing now is proven reliable business model that helps
to cut down costs and optimize the whole manufacturing process, thus it is used
in the various spheres from Manufacturing to Call Centers. Eventually, it is a
win-win situation both for the companies to involve skillful employees and
those countries like India to receive Western investments into their economy
and to give jobs to many talented graduates.
REFERENCES
1.
Bhat, V. (2005, February 28). India as an Offshoring Destination:
A Historical Perspective. Retrieved September 18, 2014, fromhttp://ezinearticles.com/?India-as-an-Offshoring-Destination:-A-Historical-Perspective&id=17486
2.
Job
outsourcing statistics (Research date 1.1.2014) http://www.statisticbrain.com/outsourcing-statistics-by-country/
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