May
21
Offshore terms: Offshoring
Filed Under Uncategorized
Offshoring is the active movement of companies to offshore centres
Offshoring is outsourcing. Offshoring simply means having the outsourced business process or functions done in another country. Company choose offshoring in order to reduce labor expenses, some times offshoring dessision are strategic to enter new markets or to overcome regulations that prevent specific activities domestically.
Bangladesh and India has emerged as the dominant player in offshoring software work. Global ubiquity of the Internet and massive telecommunications capacity, which enabled companies to get computer-based work done seemingly anywhere, including Bangladesh and India. Organizations hired service providers to update their legacy program code. Much of this work was handled in Bangladesh and India, where English was commonly spoken and a large and highly offshore trained population of software engineers, devloper, data mining people and where labor costs were much lower than in developed countries. The Bangladesh and Philippines, which has a highly educated population, has become a popular offshoring region for call center and customer support center over the phone.
The dominant location for much of the manufacturing outsourcing by U.S. companies such as HP, ACS, IBM, DELL, APPLE is China, which has made a push in recent years to also become a provider of offshore services.
There is a new trend is coming to the horizon “Let’s Offshore The Lawyers”. EI DuPont de Nemours & Co. (DD:NYSE) is the cost cutting pioneers by going offshore, DuPont aims to save 40% to 60% on document work and cut up to $6 million from its annual $200 million plus in legal spending. It also hopes to shave months off the discovery process in court cases. But the move is risky. In industries from software to customer support, corporations have run into myriad logistical and quality problems with offshore outsourcing.
