Outsourcing started as a revolutionary concept in reducing the overall cost incurred by company. What started as the nascent experiment actually triggered the whole work culture today known as outsourcing.
The birth of outsourcing happened in the mid 90s when the companies looked at various ways to reduce their overall cost and increasing the profit margin in specific unskilled department. There was an immediate effect and positive result and it had a dominos effect, which led to the companies to try this concept in skilled areas such as IT.
Asian countries specifically India, where cost of living is significantly lower than the developed countries grabbed the opportunities and resulted in the IT Boom as its called there. Coupled with the young workforce, outsourcing was a boon to this population and it was a main reason the outsourcing concept took the world by storm.
Various financial and market experts predicted the so called IT Boom wouldn’t last longer as the developing countries like India which benefited the most from outsourcing would eventually improve their cost of living and this would impact the cost of work as well. However, the economic crisis in 2008 made the companies more cautious and thus outsourcing is still the way forward.
Which brings us to the most important question, what’s the future of outsourcing? A market like USA,
which boasts of the highest standard of living, and a country like India, which has the highest workforce of youth population (over 60%) in the world, can be great partners in revolutionizing and taking the outsourcing concept further. No one can deny the fact that future is bright but challenges remain as other growing economies have started showing the impact and this is a direct competition for an established market like India.