Saturday, January 07, 2012

Bring Outsourcing Back Home

Why waste time on something that you are not good at? Outsourcing to many companies and executives definitely looks like a good idea. Outsourcing is a business practice where companies outsource/contract out selected or part of their business operations to other companies that specialise in those operations in order to lower cost and improve efficiency. Outsourcing can definitely help companies save time, money, space and also the need for training. Outsourcing as a business function was first formally introduced as a business strategy in 1989, this practice’s origins began in the aftermath of World War II. Today, countries such as India and China is the world’s leading outsourcing countries.

Many companies today are still utilising outsourcing for the above benefits. However like a coin, there’s always two sides to outsourcing, the good and the bad. On the bad side, outsourcing can bring about bad customer service and poor service or product quality.  Many companies and executives today are finding that outsourcing does not really provide the cost and time savings they had hoped for. Many are finding that they are being burdened by the inflexibility of contracts as well as factors such as rising shipping and transportation costs. Most importantly, outsourcing ultimately hurts your economy back home where jobs back home are loss to foreign countries and this is a big and concerning issue in most countries today including back here in Australia.

This is why there’s been call and action by both people, governments as well as businesses to bring the jobs back home. Some have call this phenomenon as ‘backshoring’ and ‘reinsourcing’. To me, I think this is definitely a good idea as companies can provide better customer service, dedicated customer support and also better quality as well. And of course, we get to keep our jobs back home and ultimately, this benefits our economy!

28 comments:

Abinajay said...

Thank you for the post. Backshoring and Reinsourcing both are better option. But by outsourcing a business we can save time and money too. So let choose a right one to get a quality results.

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