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Thread: What Is The Future of Outsourcing?

  1. #1
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    Default What Is The Future of Outsourcing?

    Outsourcing is still increasingly being utilized by big companies especially from rich countries into poorer countries where salaries and cost of operation is far lesser than running them in their own country. The Philippines is one of the recipients of outsourced work and it is also one of the major source of income of residents here nowadays. I think it's an advantage both on the businesses outsourcing some of their work and on the countries or areas receiving the work.

    What do you think is the future of outsourcing? How do you see it in 5 or 10 years?

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  3. #2
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    Default Re: What Is The Future of Outsourcing?

    I'm not sure if anybody is going to be able to predict with any certainty the future of outsourcing, and especially to other countries as the global market's at the moment aren't as stable as they have been in the past. There's no doubt in my opinion that a lot of the bigger companies will still outsource to various countries around the world, but as for the smaller ones I can see lot of businesses starting to do a complete process from start to finish in-house.

    The initial cost might be large, but at the same time if a business isn't sure what the future of the global economy might be, they may prefer to play it safe and know exactly what their costs might be in the future rather than taking the chance that it may fluctuate.

  4. #3
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    Default Re: What Is The Future of Outsourcing?

    I think it will continue to grow as long as the internet keeps surviving and thriving since it is a big part of what made this methodology grow more from just manufacturing and production companies being able to outsource. As long as we can easily communicate and monitor events from the other side of the globe this easily I don't see much of a reason for this movement to slow down although I do think it has already peaked.

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    Site Owner & Gold Sponsor Rob O'Byrne's Avatar
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    Default Re: What Is The Future of Outsourcing?

    We work in a Global economy now. Products are sourced from all over the World. We partner with other businesses all over the World. And increasingly business 'outsources' functions that were traditionally conducted in house. I see no reason for this to slow down.

    What is interesting to watch is how practices such as 'low cost country sourcing' move slowly around the World as labour and other costs increase. An example is the rise of Bangladesh in clothing production. What is also good to see is the increased awareness and focus on 'ethical' sourcing.

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    Bronze Member joshposh's Avatar
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    Default Re: What Is The Future of Outsourcing?

    Outsourcing will continue to grow. Everything is no longer being built in the country that the company was founded on. If I ran a big corporation, my duties would be to make the share holders happy, and not the employees that demand $30 usd an hour. If I can have the product made at a fraction of the cost domestically, and at the same time put more money into my pocket, I'm going to do it. You lower the manufacturing cost of the product and in turn make more profit. Simple as that.

    The downside to that is locally, those jobs that were shipped over to third world countries, they get hit hard with no employment. Flint Michigan is a perfect example of how a industrious city can turn for the worst in a matter of years with this type of practice.

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    Default Re: What Is The Future of Outsourcing?

    Well as long as there are differences in costs to produce, then outsourcing does not seem to be going anywhere anytime soon. That said, though, it is difficult to really think about what we are in for in terms of business practices in the future. There are just so many factors at work, including global politics and legislation, so things can really change quite quickly. I am guessing that we will see another trend of buying products made at home, because those seem to come along once every couple of years.

  8. #7
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    Default Re: What Is The Future of Outsourcing?

    Outsourcing will always have a bright future ahead. Since we're now living in a highly industrialized era, where labor can be cheap in certain places and expensive in others, companies and small-scale businessmen would always try to find ways to increase productivity with the least possible cost. Outsourcing addresses that need, making it relevant for decades (even centuries) to come.

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    Default Re: What Is The Future of Outsourcing?

    Outsourcing is gradually becoming the new order of obtaining productivity. This method has served to enable the producers of goods and services to save lots of money on the cost production. They are able to pay lower rates to have the job done because it's considered that cost for workers to commute to work would have been eliminated. The producers will not have the to face up to to a lengthy bargaining process involving the unions and many of the costs for providing the staff welfare programmes will not be required.

  10. #9
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    Default Re: What Is The Future of Outsourcing?

    I expect that companies will be outsourcing more in order to cut costs. I believe though if outsourcing will be cutting into the taxes government collect, they may have companies which outsource pay more taxes thus canceling the savings they'd make. So while outsourcing will be around for a while when people start losing their jobs because of it, there has to be a change unless companies want to relocate overseas.

  11. #10
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    Default Re: What Is The Future of Outsourcing?

    Without a doubt. It will continue to grow, as previously poor countries from the "Third World" are developing steadily, like India. There will be far more qualified people with a wide array of skills starting new businesses or just applying high demanding jobs, whether We like it or not. There will be some markets that will shrink compared to others, like desktop computers vs. smartphones and tablets, or most old factories with human labor vs. atomatized
    manufacturing modern factories. Market's growth is somewhat unpredictable, but we can be certain that It will grow.

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