Industrialized and well developed countries outsourcing jobs overseas is a promise of an economic growth and well being for thousands of people in developing nations.

While outsourcing is giving fresh graduates and technology experts jobs and livelihoods, at the same time large numbers of workers in the rich countries are losing jobs which are shifted offshore. These workers are displaced without readily available jobs to replace the positions transferred to offshore outsourcing.

From the labor point of view, outsourcing poses threat to workers security in industrialized countries. Globalization made outsourcing process the means of uplifting the economies of less developed nations. This may be benefits of higher wages and better living conditions for the outsource provider but they are not secured. They are working without all the benefits of actual employees.

Outsourcing offshore to save on costs sometimes has a negative effect on a company’s productivity. Just because the workers are paid less doesn’t necessarily mean that they are more productive. Where workers are using manual tools and where workers use computerized machines, productivity will make a big difference. The real productivity depends on the kind of function you need to outsource like computer and internet related jobs, where real results give an outsourcing party an edge.

On a Client-Provider Case

Too many of outsource providers may promise the client a degree of transformation to improve the business. While it is one of the main objectives of the client, more often the transformation is not achieved due to incompetence of the provider. It may also be due to the client’s reluctant attitude to invest additional fund for transformation after the contract is in place, so no matter how capable the provider is, failure more likely would set in.

For a company’s benefit, outsourcing can provide a quick start. A reliable outsourcing service has the ability to kick off right away. It would take a long time if the company would hire, train and equip people in-house. In addition to that, it may require additional capital which is another difficult issue. Outsourcing is the best option here.

From an outsourcing provider standpoint; like everybody knows most outsourcing involves freelancers. Freelancers are happy workers and with happy workers, it means more efficiency and more productivity. Outsource providers have the benefit of having a better lifestyle than in-house employees. They have flexible working hours. They are even exempted from the tyranny of companies who serve high rank employees better than rank-and-file. And they can choose to stay away from clients with conflicting ethics.

Mutual benefits should be accorded to both provider and the client in order to make outsourcing an effective way of meeting tangible results. A company must examine first its own culture and needs to be exact that outsourcing is a good fit for the business. On the other side, the provider must take into account that a client paying for services creates a huge wall of expectation and must be accountable. It is further suggested that a legal contract must be in place to protect both the outsourcing party and the outsourcing provider.

We may conclude that outsourcing is beneficial for both parties depending on how they understand and accomplish it to work and provide them long-term benefits.