Manufacturing outsourcing

There is nothing new to outsourcing as a trend. This has been going on since ages together. Before the IT revolution of the twenties, companies in developed countries used to outsource manufacturing jobs to nearby developing nations. Manufacturing outsourcing involved companies to outsource manufacturing related jobs as well as set up manufacturing outlets and factories in developing counties like Mexico, Canada and South Africa.

The only difference between manufacturing outsourcing and the IT outsourcing of today is the relative speed and additional costs involved. Manufacturing outsourcing was a slow process and involved shifting of finished goods from the companies in developing countries to their original destination. This gave rise to job opportunities in the transportation sector. But in case of IT outsourcing there are no additional job opportunities generated as everything is traded using computers. It is only because of these reasons that outsourcing though it has been going on since ages has come into major scrutiny by the workers of developed countries in recent times. A situation seen as temporary by many economists.

Offshore outsourcing call center and other ITES services are the ones making the news currently following quickly with outsourcing human resource departments, accountancy outsourcing services and sales functions. The benefits that organizations get from outsourcing these functions is huge and also gives citizens access to cheaper services. These factors very well support business and process and outsourcing in the long term



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