| dvent of internet, globalization, free marketing, | | | | reducing domestic employment and domestic |
| and liberalization has turned the world into a small | | | | investment. Many jobs in the infotech sectors - |
| global village consequently destroying all trade | | | | such as data entry, and customer support - have |
| barriers. The awareness that outsourcing can | | | | been or are potentially affected. |
| boost productivity sans forfeit of class has | | | | Offshore Outsourcing ensues largely in the IT |
| impelled MNC’s, in all segments, to | | | | sector, followed by medical transcription and other |
| endorse this loom. A good number of major IT | | | | health care-related jobs, automotive spares |
| companies do most of their business overseas | | | | components, engineering segment, and business |
| and obviously want to have some of their | | | | processing, accounting, advertising, , Human |
| employees in those markets. | | | | Resource Management and Development, , |
| Lower wages in some countries are also a huge | | | | financial investment and consultancy, legal |
| incentive to move operations, especially since | | | | services, and network security. |
| high-speed communication removes many of the | | | | Emerging countries like Philippines, Malaysia, |
| barriers to dealing with U.S.-based colleagues and | | | | Vietnam including East European countries from |
| customers. Therefore, numerous MNCs in USA, | | | | the former Communist Bloc i.e. Poland, Hungary |
| Europe, Australia, and Japan have initiated IPOs | | | | have watched India effectively change it’s |
| (International Procurement Organizations) in | | | | world image from a huge begging bowl to that of |
| developing third world countries particularly India, | | | | a proud, self-sufficient nation, and are keen to |
| China, Mexico and Brazil. | | | | replicate it’s success story on their own |
| Offshore outsourcing is the practice of hiring an | | | | crumbling shores. They are beginning to challenge |
| external organization to perform some or all | | | | India’s leadership in the off-shore / |
| business functions in a country other than the one | | | | outsourcing industry, making it necessary for India |
| where the product or service will be sold or | | | | to protect itself by stepping up data security, |
| consumed. It can be contrasted with offshoring, in | | | | keeping the BPO / KPO / IT industries free from |
| which the functions are performed in a foreign | | | | trade unionism and improving its educational |
| country, whether by the foreign subsidiary of the | | | | infrastructure to ensure every student graduating |
| same company or a third-party. Opponents point | | | | is a suitable employee for multinational firms. |
| out that this sends work overseas, thereby | | | | |