Is outsourcing suitable in India ?Contracting work to third party organizations, anywhere in the world is called outsourcing. It is becoming a very popular practice as the introduction of the Internet has allowed global communication to prosper. Whereas in the past you may have had to depend on local people in search of an expert in your field, now you can use anyone anywhere in the world. Outsourcing has affected almost every aspect of the business, from manufacturing to customer service, back office staffing.
One of the main benefits of outsourcing is to cut your expenses. When outsourcing in countries like India, you can find highly trained professionals who are willing to work at a much lower hourly rate than in the Western world. First used in the 1980s, outsourcing was increasingly used in the 1990s and is now accepted as a cost-cutting measure used by businesses of every size and in almost every industry.
Outsourcing has been highly controversial in many Western countries, with those opposing the practice claiming that it is one of the reasons for the loss of domestic jobs, especially when talking about the manufacturing sector. On the other hand, proponents claim that outsourcing creates an incentive for businesses to allocate resources where they are most effective. It has also been claimed that outsourcing has contributed significantly to globalization, and it supports the free market economy globally.
On local level outsourcing is used as the tool to privatise jobs, e g. in municipal corporations external agencies are given a contract to supply staff. What is a deal between employer and agency regarding remuneration per head is kept hidden and due to joblessness candidates accept minimum wages to work with them? They are deprived of other facilities which are provided by an employer because they are adhered to agencies which have employed them. In this internal dealings between both of them an employee who renders his services looks hapless.
What do you think about it ?