Outsourcing has remained a growing field through good economic times and bad. What makes this such an attractive option to businesses worldwide? What is it about the Asian economies that make them such outsourcing magnets?
There are many reasons for this phenomenon to include the following:
Bottom Line – For most businesses, the first and foremost consideration is the bottom line. Put simply, outsourcing makes the bottom line look good. It offers various cost savings such as a reduction in fixed costs, lower labor costs and savings in research and development. The services and goods offered by such businesses then cost less. As the benefits of the cost savings can be passed on to the public, firms that outsource then have an edge over the competition.
Availability of Labor – Often businesses find it difficult to get a talented workforce that can meet the skills required for their operations without excessive drain on their finances. The large, skilled workforce available in Asian economies makes outsourcing a very attractive choice.
Regain Focus – A lot of the routine work involved in the day to day operation of a business such as accounting often has nothing to do with the product or services offered by the business. Even services such as customer support that are crucial to a company’s product lines can be a heavy financial burden on the company. By taking on these routine tasks, outsourcing allows a company to regain its focus on its core operations
Target New Markets – Outsourcing to Asia has helped several businesses to break into new markets that they had no access to earlier. Outsourcing helps build awareness about the company in the target markets, and it can give great exposure to the products and services that the company can provide to consumers in these new markets.
Customized Services – Outsourcing in emerging markets often offers companies a way to explore the possible customization of services and products for those markets and eventually grab a foothold in them.
A combination of these factors and others have made outsourcing to Asia such a great success that many businesses are turning to this option in an effort to be competitive in the face of such stiff opposition at home.