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   U.S heavily reliant on its service-based economy
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Pete Finnigan Administrator

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U.S heavily reliant on its service-based economy
« on: Jun 16th, 2007, 10:11am »
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Outsourcing can be very profitable yet it needs extreme caution and market study before it is implemented. Each facet of the exercise needs to be carefully considered and properly executed. There is little margin for error if full value is to be obtained. However, the potential benefits are well documented, and strategic outsourcing is now mature enough for the path to have been trodden countless times previously.
The West has become heavily reliant on its service-based economy and the plethora of software that supports it. This has led to the recent acceleration to offshore outsourcing of software and service jobs. Again, countries with an ample supply of highly educated but relatively low-cost labor are eager recipients of western outsourcing efforts. These countries have active government-sponsored socio-economic initiatives and incentives to participate. Countries actively pursuing this work include India, China, and Israel, among others. For this and other reasons, outsourcing to India can be mutually beneficial and worthwhile. Again, as history dictates, outsourcing to developing countries helps equalize the imbalances and promote growth of these economies which in turn have strong global benefits.  
The organization seeking to outsource do so with certain intentions, primarily cost reduction and quick turn around time to stay on top of the current global competition.  
The most important question that every outsourcer should answer is whether he or she can manage the outsourcing. This is because outsourcing requires more management than most people expect. Managing your outsourcing venture is critical to the success of your project, but is an area that has not been given its due importance.  
Have a clear plan for your management strategies and adapt them to outsourcing. Be aware of the costs involved in managing the outsourcing process.
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