The difficulties associated with managing staff in another countryIntroduction Offshoring is a process used in outsourcing. It involves having the outsourced business activities carried out in another country. Most of these activities are outsourced in order to reduce labor expenses that are likely to be incurred in the course of the business transactions. India is known as a dominant player of outsourcing, mostly in software activities. The process of outsourcing can be greatly achieved in three main ways; for instance, the Indian government formulated a policy that all foreign business ventures must have Indian majority share capital.
Fearing the administration turnover, which involved the Indian government turnover, many corporations that are based in United States pulled out from the Indian government due to the technically aspects. The second aspect was the global ubiquity of internet and immense telecommunication capacity. This further facilitated most business organizations to carry out major transaction anywhere, including china. Third, most business organization hired ISP (Internet service provider) which was largely responsible for ensuring that legacy program code is up-to-date. Most of these activities were carried out in India, where English was a common language that was spoken, where most of the population was highly skilled on matters involving software engineering, and of course where the labour cost produced by both skilled and non skilled employees was much lower compared to other developed countries (Berry 2005). Organizations that are interested in outsourcing are generally curious to explore more on the advantages and disadvantages of outsourcing as a result of offshoring.
By obtaining insight truth of both good and bad aspects of outsourcing, an organisation would then be able to decide whether to outsource its activities in terms of production and services offered.
An organisation would then be able to outweigh both the advantages and the disadvantages of outsourcing, thereby allowing it to make vital decision. Some organisation starts outsourcing process without necessarily understanding the advantages and disadvantages’. As a result most of them end winding up their business activities due to high competition from firms that have outsourced to those that did not outsource. The following are list of both advantages outweighs the disadvantages of outsourcing.
Basically, the organisation under consideration is India. The reason being India was the first country to outsource its services. Advantages Availability of a big talent pool India being one of the first countries that benefited from off shoring activities was able to motivate both young and talented individuals. India has about 380 universities and 11,200 higher education centres’ which produces at least 2.1 million graduates annually. As a result of this, major businesses companies have provided customers sufficient options to choose from. The number of working individuals in India is projected to increase by 250 million by 2020 at a mean rate of 15 million per annum.
This however resulted to high demand of labor by both US and Europe companies. Since India had the largest number of English speaking population, as a result is enhanced a good communication between and merchant when major business transactions are outsourced (Davies 2004).