Countries for outsourcing are ranked depending on several factors such as – Cost, People skills and Availability, Business Environment etc.
Some leading countries that provide outsourcing services are: India, China, Philippine, Singapore, Bangladesh and many more.
Most of these countries are developing countries or countries of emerging economics because of the availability of labor at a relatively low cost than the developed countries though high-cost Singapore is one of the top countries because of their high quality service.
Reasons of Outsourcing
Get Access to Specialized Services: By outsourcing an individual or a company can access to professional, expert and skilled services in functions that may not be their core competency.
Cost savings: By outsourcing one can access to lower cost economies generated by the wage gap between industrialized and developing nations.
Increased Efficiency: With outsourcing an organization can experience increased efficiency and productivity in non-core business processes.
Focus on Core Business :By outsourcing non-core activities will allow to spend more time to concentrate refocus on the core business processes
Improve quality: Through contracting out the service with a new service level agreement the quality of the task can be improved.
Capacity management: outsourcing improves the method of capacity management of services and technology.
Risk management & Continuity: Outsourcing will provide a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.
Tax Benefit: Some countries offer tax incentives to move manufacturing operations to counter high corporate taxes in another country.
Reduced Overhead: The extremely high overhead costs of performing a particular back-office function can be minimized by consider outsourcing for those functions that can be moved easily.
Creating leisure time: Offshore outsourcing can help to save both time and effort. It helps individuals to optimize their work-leisure balance.
Staffing Flexibility: In outsourcing an individual or a company is allowed to have seasonal or cyclical demands to bring in additional resources when needed and release them when the operation is done.
Develop Internal Staff: Outsourcing can be used to off-load less interesting works, or to handle peak loads. This leaves staff free to pursue new, developmental opportunities.
Makes Faster Delivery to Customers: Outsourcing helps to make faster delivery to customers because the task is done by a more efficient and better team.
Improve Customer Satisfaction: With timely deliveries and high-quality services through outsourcing may impress the customers.
Benefit from Time Zone Advantages: Outsourcing to in south or south-east Asia has a time zone advantage. For example, while it is night in USA, day in Bangladesh or India. This enables the work to be completed much faster and gives the business a competitive advantage.
Help to Gain a Competitive Edge: Outsourcing can give the business a competitive advantage by increasing the productivity in all the areas of business.