Offshore Outsourcing: Reasons, Rationale and Reflections

Unexpected turn of events in the recent years, combined with the dynamics of New Economy, has compelled most of the companies to seek new horizons. In a free marketplace the economic needs of business prevail - a company that offers quality products and services at the lowest price, backed by reliable customer service, usually gets and retains the customers. The main purpose of outsourcing, these days, is to make the company resources free from repetitive and non-core work and put them to more productive use that help create additional wealth and more jobs. Eventually outsourcing has almost become a necessity rather than an option, especially when one's competitors are already reaping its benefits. Outsourcing as a phenomenon is not new. Since ancient times companies in developed countries have outsourced services to nearby less developed countries. The only difference then and now can be seen in the frantic pace at which things are happening. Should we feel concerned? No, because outsourcing is the basis of all economic activity and is also symmetric. This article deals with all these issues and many more related to the major misconceptions about offshore outsourcing, and the constant debate that is going on at the international level. Apart from exploring the economic justification and need for offshore outsourcing, its pitfalls have also been discussed.