Outsourcing of Jobs Overseas. What

¶ … outsourcing of jobs overseas. What does the future hold?

On a macro level, outsourcing may be problematic in terms of the loss of jobs it has generated in some industries, but from penny-pinching company's perspective the practice can offer substantial savings. "A large majority of clients -- 87% -- say outsourcing delivers the benefits projected in the original business plans. Outsourcing is perceived as such an essential business practice that 91% of clients, whether completely happy or not, said they will outsource again."

According to Stephen Miller, although outsourcing can pose some organizational challenges, overall its effects are salutary for most organizations, and its benefits outweigh its drawbacks, provided it is undertaken in the correct manner.

Too often companies see relationships with outsourcing partners as adversarial in nature, as a way of simply quickly maximizing profits. Instead, Miller emphasizes the need for stressing collaboration and the mutual benefits that can be gained by both parties from the exchange. In short, the attitude of the client should not be to extract as much value as it can, at minimal cost. Instead, the long-term relationship of the two entities involved should take precedence. The focus should be on maximizing value for both the client and service provider.

Collaboration between entities requires "more transparency, better communication, greater trust and genuine reciprocity," and true partnership.

Companies that identified themselves as prioritizing mutual benefits became more willing to outsource even more critical, core procedures such as research and development, customer service (call centers), it, and HR functions, given their more positive outcomes with the process of outsourcing. But even Miller's relatively sunny portrait reveals a few potential problems that can arise: no matter how collaborative, clients and service providers will still have different interests and perceptions of the market, even different perceptions of what collaboration means.

Client-partner relationships must also be carefully vetted: financial stability, a proven track record, and the need for long-term as well as short-term cost savings must be addressed. Given the critical nature of the relationship, problems with the provider can result in damage to the client's other relationships, including customer relations. The client and service provider should also be on a similar path of technological growth and it is essential that the service provider have reasonable contingency plans in the event of unforeseen circumstances.