Offshore outsourcing is a business activity that is adapted to avail many businesses related benefits like cost benefit, technological development, managerial support or best customer services in offshore areas. In offshore outsourcing, a business tends to transfer some of it works even an operation to a third party in offshore areas so that it may concentrate on its key responsibilities.
In the near business history offshore and outsourcing were two different terms and with the passage of time business people moved towards taking advantage from both terms at a time and started outsourcing their operations offshore. Doing this they achieved their targets well and then they started this activity as a routines. In the beginning there were more risks but with passage of time business people succeeded to prevent these risks to significant extent.
If we talk about the statistics of offshore outsourcing then we will come to realize that many countries are earning a major part of their annual revenue from providing outsourcing services. It has been observed that less developed or developing countries are showing more interest in offshore outsourcing. These countries include China, Philippines and India.
In statistical overview of offshore outsourcing it is also necessary to consider which services or functions are usually outsourced. In the statistical survey it is observed that business practice Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), Offshore Software Development (OSD), and Knowledge Process Outsourcing (KPO). These are most commonly practiced outsourcing services.
If statistical importance of any issue is under discussion then it is necessary to have a discussion about numerical value about that particular issue. As we discussed above that three developing countries are offering the offshore outsourcing services. Let’s take an overview of statistical results of Outsourcing services provided by China, Philippines and India.
In the very beginning of its introduction business people did not accept this practice happily but with 1990s and this practice attained an immense growth. As per the results of research study it has been observes that IT offshore outsourcing has a big contribution in offshore outsourcing that is almost 30%. After IT the next mostly outsourced service is Human Resources related services and their share is nearly 18%, financial services are nearly 10% and sales and marketing services within 14%.
Remaining 34% of offshore outsourcing has been recorded in other administrative activities. The percentages mentioned here may differ from other studies because of change in parameters or population being studied or may also differ due to change in point of view of researchers.