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Monday, January 31, 2011

Outsourcing and its Implication

Outsourcing remains a phenomenon, continually evolving at a very fast pace and is expected to maneuver many more businesses across the globe. To some analysts, this is largely because of the promising growth of information technology – a key factor in globalization. Outsourcing non-core activities like back office jobs to an outsource SEO staff, for instance, helps multinational companies keep their edge in the cut throat competition. Most companies turn to outsourcing to cut costs and improve services at the same time. But then again, there are also companies who outsource simply because that is what their rival companies are doing.

To put it simply, outsourcing is not always a win-win strategy. Ask several business owners who have tried outsourcing and you will soon discover that the business strategy has many downsides, many of which tend to go unnoticed. An example of the downsides of outsourcing lies on the policies of first world nations like the US and the United Kingdom. As we all might know it, these nations have nothing but sloppy policies on outsourcing. A large number of companies from these nations tend to outsource simply because they are forced to believe that outsourcing is their only alternative. Many of these companies are made to believe that leveraging their competencies will help them reduce expenses. This is where fair playing ground for both outsourcing companies and outsource destinations is at risk.

Leveraging competencies to outsourcing SEO services providers that are usually located in third world countries certainly benefits many, but what about the first world nations? First world nations are not at all spared from unrest and they also need assurance of better services and improved businesses. Any outsourcing company has to see to it that they select an offshore destination that features good governance, excellent communication facilities, great culture, and a vast knowledge and expertise. Companies that outsource also need to ensure that they deal with a provider that guarantees better products and services at affordable rates.

Other drawbacks of outsourcing include reduced motivation and decline in services. Employees who work in an organization that is already outsourcing tend to fear job losses. Why not, the thought of a company closing deals with an outsource SEO consultant increases the risk of an employee being sacked in favor of an outsource SEO staff who can possibly provide the same services at a much lower price.

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