As the US, and more over, the world adapts to a new economic paradigm shaped by the recent global economic crisis, the concept of outsourcing has become a major consideration for businesses whom are seeking critical cost cutting solutions while maintaining quality assurance.
The trend for outsource expansion is clear as economists have predicted that by 2015, more than 3.3 million U.S. jobs and an estimated $135 billion worth of wages, will be transferred to developing Asian and African economies, due to cheaper labor markets.
Historically outsourcing has usually been associated with the field of industrial technology as approximately 30% of all outsourced jobs belong to the IT sector. A staggering 4 million jobs has been transferred to economies of China, India and Philippines. This transfer as contributed substantially to the economic development of these countries.
Statistically, global outsourcing accounts for approximately 28% to IT sector, 11% to finance sector, 15% to sales and marketing and 9% from administrative sector. The remaining 22% belong to various sectors such as consumer distress calls, general data segregation jobs, tourism etc.
According to many researchers and surveyors, U.S. outsourcing can play a major cause of economic recession. With the recent establishment of a new anti-business U.S. political regime both at the state and federal levels, businesses are being forced to transfer massive labor requirements off shore in order to survive.
Substantially reducing labor costs is the number one benefit of outsourcing work. Asian countries are an ample source of labor resources and the work is done at a much lower cost than in the west. This is the primary reason why most American and European countries outsource their work to countries such as India, China, Pakistan, Philippines, Malaysia, and other low cost labor countries.
Today, the top outsourcing countries include America, Canada, United Kingdom, Australia and even Japan with the trend toward outsourcing continuing to expand..