The boom in information technology coupled with expanding internet solutions, especially in the fast advancing countries like China and India, opened up avenues for outsourcing at a much lower wages. Thus facilitating recovering of losses incurred during recession.
Outsourcing has given the unique opportunity to the companies and organizations to concentrate on their core mission thus widening the scope of research and advancement which is more creative and financially lucrative in the long run. Outsourcing of jobs has precipitated the process of globalization. It has given a new meaning to the word which had hitherto included placement of human resource in multinational environment. Today one need not actually go to foreign soil to work but the reverse has become a virtual reality indeed! Foreign work place in domestic environment has become a reality through fast speed broadband. The whole process has greatly helped in developing mutual trust and understanding between the countries and hugely contributed towards job opportunities and employment across the globe.
The process of outsourcing has created jobs for thousands of aspirants in developing and under-developed countries. It has also provided and helped to overcome the prejudices of racial and cross cultural values and misunderstandings, amongst the employees and employers alike. The employees of the outsourcing units have gained considerable knowledge about the wide ranging issues and areas of professional competencies. The employees of the outsourced units too have been able to improve and improvise their professional competencies as outsourcing of mundane and routine work has provided them with more opportunities to focus on their own core competencies.
According to P.F.Drucker, ‘access to information represents the basic precondition for success of a firm’ (Drucker, 1998).