The History of Offshore Outsourcing

Offshore outsourcing is a term we often get to hear today, particularly when it comes to the industrial sector. But the truth is that offshore outsourcing is not a totally novice concept. Industrial companies who are contemplating of taking advantage of the benefits of offshore call center or are already taking part in call center outsourcing would certainly maximize their business opportunities by learning the full history of offshore outsourcing and how they can use it to improve their businesses today. What they say is true that experience is one of the best teachers because it can provide a better way to learn things and avoid the common mistakes that happened in the past.

Offshore outsourcing has been around since the latter part of the twentieth century when industrial companies started to outsource some of the minor aspects of their business to other companies who provide more specialized services. Before call center outsourcing has made a significant contribution in the industry today, business organizations had to handle most of the integral functions of their companies themselves. This kind of business model often leads companies to overlook the key parts of their businesses because their resources are often exhausted in less important matters, resulting in the inefficiency and wastage of valuable funds and company time.

Being able to learn from the mistakes of the earlier business models especially during the 70’s and 80’s lead to the inception of offshore outsourcing. And as the market demanded for more efficient customer service, call center outsourcing has become the emerging trend in business industries. Customer service call center is not the only major service that is being outsourced because companies that integrate offshore outsourcing in their business operations also sub contract some of the major aspects of their businesses including accounting, data encoding, payroll, and human resources to organizations that offer these types of specialized services.

In the early 90’s, organizations only outsourced jobs to some of the local companies that offered the services they were looking for, but in the mid 90’s when the first stage of globalization started to come into view including the major developments in technology and communication, offshore outsourcing developed into a full blown business trend. Another reason why offshore outsourcing became the number one option for business industries is due to its cost effectiveness. Companies opting to outsource some of their business offshore enjoy a much lower labor cost without sacrificing the quality of trained personnel to handle some of the aspects of their businesses.

Offshore call center has also become an integral part of businesses that focus on customer service. This type of offshore outsourcing allowed them to develop better relationship with clients by being able to service their needs without neglecting the core responsibilities of their companies. And as more and more business entities start to take notice of the benefits they can take advantage of from this kind of business model, call center outsourcing and other types of business subcontracting models are expected to grow in the next twenty years or so.