Тематичний напрям 1.

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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