Moving To International Shores

Moving To International Shores

The world is​ quickly turning into a​ global village. The rapid developments in​ telecommunications have given a​ big boost to​ this​ movement. The entire world is​ slowly turning into a​ common​ market, with the Internet playing quite a​ big role in​ this​ development. The growth of​ e-commerce is​ an​ example of​ how people from Canada can just as​ easily sell goods to​ those in​ Australia as​ they might to​ people a​ few buildings away. Businesses, both big and​ small, have not been slow to​ respond to​ the need to​ reach out to​ a​ much wider range of​ people.

One of​ the results of​ this​ coming together of​ the world is​ seen in​ the growth of​ off-shoring. Why should a​ company decide to​ take to​ off-shoring? The primary reason​ for​ this​ is​ that companies want to​ reduce their expenditure as​ far as​ possible. if​ this​ means having a​ setup on​ a​ different continent so that the costs may reduce considerably, so be it. Transportation​ is​ certainly not a​ problem in​ this​ communication​ crazy world of​ ours. So China and​ India have emerged as​ top off-shoring destinations for​ countries from all parts of​ the globe.

A common​ mistake that we all make is​ to​ assume that off-shoring is​ the same as​ outsourcing. Well, here is​ some information​ for​ you. The two are quite different. Outsourcing generally means giving out a​ contract to​ do a​ piece of​ work to​ an​ external company. However, off-shoring refers the transferring of​ a​ part of​ the operations to​ a​ different unit (either of​ the same company or​ a​ different one) but which is​ situated on​ different shores. Outsourcing could be done within​ the same country, but not off-shoring. The latter necessarily refers to​ a​ geographical distance.

Off-shoring is​ generally of​ two main​ types. These are production​ off-shoring and​ services off-shoring. The prime example of​ production​ off-shoring can be seen in​ the case of​ China, where production​ costs are minimum. Thus, companies that want to​ save on​ their production​ costs generally make a​ beeline for​ Chinese locations to​ produce their goods.

As far as​ services off-shoring is​ concerned, the best example is​ that of​ India. Thanks to​ the unbelievable expansion​ of​ the telecom industry and​ thanks to​ the great Internet boom, after the 1990s, there was an​ opening for​ countries which would incur lower costs to​ enter the services field. Thus, India, with her pool of​ English-speaking people turned out to​ be the perfect fit.

of​ course, off-shoring is​ not limited to​ these two countries, and​ it​ continues to​ increase its influence everyday.

Moving To International Shores

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