Can a Business Compete Globally without Outsourcing?

While politicians debate outsourcing, its use continues to explode by global and local enterprises and shows no evidence of slowing down. Have you ever pondered why IT outsourcing has accelerated recently? In the past, large companies would manage all of their IT requirements independently. However, as technology progressed and became more sophisticated, an individual company no longer had access to all specialized resources to manage its own needs. As a result, the IT services market has become global as the demand for talent has outstripped the supply on a regional and national basis in the past decade. For example, the globalization of IT applications has allowed them to be built in India but used primarily in the United States. Because of the world's thirst for specialized development resources, globalization has been a common practice with a dominant proportion of the world's leading enterprises.

This is where outsourcing comes into the picture. Outsourcing allows businesses to specialize in their core strengths and delegate other work to third parties, allowing them to gain competitive advantages in today's global marketplace. Outsourcing, like other evolving marketplaces, is always strategizing on how to provide innovative products and services.

In the United States, job outsourcing has sparked much debate. On the one hand, this has been a common practice of most, if not all, leading global enterprises. Outsourcing has been responsible for helping American businesses cut costs while simultaneously increasing global competitiveness. It has also helped keep the cost of several products and services lower. The potential benefits also extend to outsourced countries, many of which have grown their economy and seen the standard of living rise due to outsourcing from the United States.

When you outsource, you're bringing someone in from the outside — someone with a different perspective (and maybe skills) who can approach regular tasks with a fresh perspective.

In this way, it helps leaders and decision-makers to gain the advantage of having a fresh perspective on business.

Outsourcing firms can also provide access to new markets by expanding a company's product line. While this is not normally a primary reason for outsourcing choices, it does seem to be a natural evolution with many historical examples.

Offshore outsourcing (as opposed to onshore outsourcing) improves global competitiveness by decreasing production costs, strengthening governmental relationships, and introducing people from different cultures to one another. 

However, offshoring is about economic efficiency, innovation, and time to market! There is nothing more frustrating than waiting weeks for an in-house project to be completed due to a lack of talent or budget resources. Outsourcing allows businesses to hire the best talent at attractive rates, which provides the capacity to accelerate critical projects in a hyper-competitive global marketplace...

Interested in how outsourcing can work for your team? Get in touch with one of our experts to find out how Payoda can help you stay competitive.