What is outsourcing?
In layman terms outsourcing involves the process of subcontracting to a third party. It can be termed as a part of division of labor which is carried out in all societies and has been used since the eighties by multinationals for subcontracting across boundaries. It is also one of the favorite political issues in U.S. during election period since it has led to job losses for many in the country.
There are several benefits associated with outsourcing such as cost savings, access to talent, improved quality, cost restructuring, risk management, tax benefits besides focusing on core business. These are just some of the advantages associated with outsourcing.
India and China which are one of the populous countries in the world offer huge pool of talent for carrying out outsourcing work. There are several dimensions associated with outsourcing which I will be discussing in the coming months.