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Offshore Outsourcing
Offshore outsourcing is the business process of hiring an external organization to perform a business function in a country other than the one where the products and services are actually developed. It is contrasted with offshoring, in which the functions are performed in a foreign country by a foreign subsidiary.
There are four basic types of offshore outsourcing:
- ITO- information technology outsourcing
- BPO- business process outsourcing covers things like running call centres
- Software R&D- offshore software development
- KPO- knowledge process outsourcing covers processes that require a higher degree of specialization and skill sets.
The driving factor behind the development of offshore outsourcing has been the opportunity to cut costs while the key enabler is broadband Internet.
Some of the countries that provide such services are (in alphabetical order)
Argentina |
Web & Software Programming, Game Development, IT Support, Network Solutions, Offshore Outsourcing Service |
Bangladesh |
Web & Software Programming, Game Development, IT Support, Network Solutions, Offshore Outsourcing Service |
Belarus |
Programming, R&D |
Brazil |
Web & Software Programming, Game Development, IT Support, Network Solutions, Offshore Outsourcing Service |
Bulgaria |
Programming and R&D |
China |
Programming, Data Entry, Customer Support, F&A |
Egypt |
Customer Support and Programming |
India |
Full Spectrum Services |
Indonesia |
Programming, Data Entry, Customer Support |
Malaysia |
Customer Support and R&D |
Nepal |
Programming, Customer Support |
Philippines |
Customer Support, IT Support, Programming, Animation, Transcription |
Philippines |
Programming, R&D, Data Entry and Customer Support |
Romania |
Programming and IT |
Russia |
Programming and R&D |
Pakistan |
Programming, Customer Support |
Panama |
Programming, Customer Support |
Ukraine |
Programming and R&D |
Offshore outsourcing has propelled several countries to prominence in the global business map. At the same time, it has also worked against the offshoring-worthiness of some destinations due to increasing wages. In Moscow, IT wages have increased by 50 percent in the past three years. Banking industry IT turnover in some cities of India has exceeded 30 percent. Hiring talented IT professionals is seen as one of the biggest challenges for firms.
Gartner’s ranking of offshore outsourcing ‘hot spots’
Asia Pacific:
Americas:
Europe, Middle East and Africa:
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