The outsourcing is thriving in the current economy. The companies looking to cut expenses in the face of soft demand are keener than ever to hand off parts of their operations to lower-cost providers. The drivers have consistently been as the article touches on increasingly sophisticated customers taking a more nuanced approach to their operations and the sourcing strategy. The core processes are kept captive and non-core processes are outsourced. Some of the non-core processes are outsourced to multiple providers to mitigate risk and some of the processes are sourced offshore while others are sourced onshore. The articles suggests that the impact of the proposals may not be that great, though they are not yet fully understood. They read the tax proposal to the next extent that it has an impact, it would impact the profits of the companies operating offshore captives so it might actually drive the demand for the third party providers of the offshore services such as the integration.
The lesson that they draw from both the articles supports the strategy that they have long followed, it is a flexible about the location and they have a choice of the countries and continents. The companies should select location based on the factors including the culture, time zones, cost, business continuity, exchange rates, relative inflation rates, skills availability, this is because of the factors that change over the time, then sometimes quite rapidly companies must retain flexibility. The Indian Rupee has had dramatic swings in value versus the US dollar as the business week article points out, the economic downturn has suddenly shrunk the cost arbitrage advantage of India over the US though that it is still large.
They are now operate the delivery centers in India, the Philippines, US and UK with more locations likely in the future. They are not dogmatic about the best location, they have long been enthusiastic enthusiastic about the types of the cities. They acquired an existing outsourcing business in Fargo. The location in the Fargo was a big factor in their acquisition decision, they recognized that they could hire, this is importantly retain long term highly skilled workers that there at the costs that is significantly lower than in the major US cities. They just have also offered
REFERENCE:
http://www.zdnet.com/news/india-outsourcing-workers-stressed-to-the-limit/334715
