Current Trends in Outsourcing

Current Trends in Outsourcing

Outsourcing refers to transferring the job by the client to a third party with minimum expense. The third party is expected to finish the task within the specified time limit. Outsourcing is practiced by many developed countries around the world in order to reduce the cost of manufacturing or to perform certain operations that can be done by a third party after providing the relevant details. Finally the output expected from the third party should be of high quality without having any compromise on any part of the output. China has emerged as an important and the favorite destination for many countries to outsource their job. This is because of the increased skilled man power present in China.

The government in China is also very supportive in order to improve their economic conditions. Many business outsourcing process have set up in china and the people are showing great interest in acquiring skills in English since all the works outsourced require the language. Apart from this, china is developing with great infrastructure and other facilities in communication with very high speed internet connection. People in china are willing to work for longer hours in a day for very low wage when compared to the developed countries. This has definitely added a bonus to the companies. Also the people are willing to work in odd hours according to office timings in developed countries.

Outsourcing is done in many fields including legal, telemarketing, computer graphics, medical transcription, data entry, back end jobs, stock maintenance, customer service, technical support and many more. The Chinese government is taking necessary steps to provide various benefits for BPO employees like heath care facility, rent home, pick up and drop after their shift and so no. Outsourcing manufacturing to China has emerged to a huge industry contributing to the revenue of the nation. Dedicated response from the Chinese government is another factor for the boast to the industry.

Current Trends in Outsourcing

Current and future trends in outsourcing pose big challenges for China. China is more than capable to meet the challenges head-on but the preparation to tackle future challenges should begin right away. China will have to do all it can to maintain the top position in outsourcing that it occupies by providing top quality services, as it has been doing for the last two decades.

In present times, Business Process Outsourcing has expanded to include a number of new services like IT outsourcing, financial outsourcing, Manufacturing outsourcing, ITES outsourcing, etc.

Additionally, outsourcing has become very sophisticated and technology intensive. Currently, China reigns supreme in manufacturing outsourcing. China is consciously focusing a lot of energy on the financial, banking, travel and tourism, software and application development sectors. China’s outsourcing industry is growing at a rate of 9.5% as compared to the 6% growth of the Indian outsourcing industry.

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