Despite criticisms and the occasional lampoon, most estimates indicate that business process outsourcing’s growth is unstoppable within the next few years. For example, a survey of investment management companies revealed that 31% are set to increase its administrative and back office outsourcing within the next two years. In addition, a study done by India’s department of commerce showed that its Engineering Process Outsourcing (EPO) industry is very likely to grow tenfold within seven years and reach an annual revenue figure of $30 Billion. The global EPO market is projected to reach $110~140 Billion by 2015.
Looking closely, outsourcing has evolved from being a mere cost saving measure to become a better way of doing business. For instance, Airbus sees outsourcing as a way to access technologies that are outside of the company’s existing know how. It seeks to avail of gains in carbon fiber composite technology by increasing the involvement of Japanese companies in its aircraft manufacturing process.
These developments will undoubtedly increase fears and hatred of offshore outsourcing. However, putting a halt to outsourcing is not the proper action to take, at this point. With so many gains (that can be attributed to outsourcing) being reported by a lot of companies, failure to seriously consider outsourcing is tantamount to giving the competition one’s own head in a silver platter.
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