Offshoring Paves Path for the 3rd Industrial Revolution
Outsourcing and Offshoring is a Natural Entrepreneurial Trend
Trade is a process of exchanging comparative advantages with one another for each other’s profit and escalation in an entrepreneurial mindset. When countries traded with each other, they used to obtain and provide resources to which they were naturally privileged. In recent times, that natural advantage has taken seldom into account. The comparative advantage obtained through human efforts has been playing a significant role.
It is a natural tendency for markets to shift geographical scenes according to the comparative advantage. In the past, the textile industry had been more prevalent in the United Kingdom, but then later migrated towards New England. From there it shifted gradually to the Carolinas and then has made its way to China. Thus the jobs and opportunities keep fluctuating accordingly from place to place. This does mean that the jobs which could have belonged to America, has now migrated to a new land. This happens in every industry and Information Technology is no exception.
The so called “Threat” of outsourcing and off shoring is non-existent. The first industrial revolution drew masses from agriculture to manufacturing. The second industrial revolution lured the factions in manufacturing to services. Now it is almost time for the third when it seems apparent that people are going to settle with Information than other sectors comparatively. The first two revolutions did not starve the former fields entirely. It just showed the world a new path.
Europe Joins the Bandwagon
Countries like Germany and France have started following its American counterparts on offshoring services. These were the countries which staunchly resisted sending jobs to other countries. But now, after realizing the importance of enhanced efficiency brought by outsourcing certain services, these countries have turned compassionately towards this new deal. This change has come not without a rise of conflict with their own established system which triggered the financial turbulence of 2008, combined with the precarious finances of many of the member states of the European Union, having significantly altered the business climate in the region.
This sudden transformation in trend is expected to continue and increase substantially as the procurement of such services in that region is still extensively lacking. Companies are looking through this window of opportunity for the first time and would not like to let it go. The services that IT companies in Europe are looking for is exponentially growing day by day.
Smartly Working Towards the Industrial Revolution
Regions like South East Asia and certain other parts of Asia have a large band of professionals with extensive talent and motivation. In near future aspects and skills with regards to attracting people might be considered as a better qualification than technical finesse and expertise. Moreover in the discussed regions, the population of working individuals is expected to rise to more than 300 million from 2010 to 2020 at an average rate of about 15-30 million per year. Especially in India, which has the largest English speaking population in the world. This ensures good communication between the customer and vendor when the work is outsourced to India. When outsourced, it is observed that the clinical trials are conducted in 30 percent less time, while there has been a backlog reduction of 50 percent in transcription processing.
With as many as these advantages of outsourcing the work to foreign countries over sustaining work for their own respective companies, it is just wise for the countries and companies to adopt and maintain the outsourcing policies as they are. This shift to personal services will immensely develop the working capacities of companies and even the employees will have immense job satisfaction. But it is still up to the western markets to understand these ideals or choose to switch courses. But in any case, offshoring will definitely prove to be more than the usual moderately efficient business.