September 28, 2016 1:26 pm | Updated 9 months ago.
The issue of offshore outsourcing and its impact on the forthcoming US Presidential election has been one of the major topics of debate. The two most important figures that have emerged in the race to the White House has Donald Trump on one hand and Hillary Clinton on the other. Donald Trump’s Presidential campaign with the catchphrase “Make America Great Again” has been ratified and at the same time criticized. Trump although has large business investments abroad do not support US firms investing abroad and indulging in offshore outsourcing. On the other hand, the democratic contender, Hillary Clinton renowned for her policies as a senator is pro- offshore outsourcing and has supported the concept of American companies outsourcing jobs to an offshore location.
The million dollar question is what is in store for offshore outsourcing in general as far as the US is concerned. The four major areas to ponder as far as offshore outsourcing is concerned includes :
a) Offshore IT Outsourcing:
- According to a recent study conducted by Bluewolf in 2016,35% of more companies are likely to outsource in the coming eighteen months. Technology firms based in the Silicon Valley outsource their work more than IT companies situated elsewhere in the USA. The US-based companies that outsource work to an offshore location, the services that are being outsourced to an offshore are:-
• Offshoring manufacturing
• Offshoring programming and IT services
• Research and development
• Logistics and supply chain management
• Outsourced call centers
The real scenario is Offshore outsourcing is here to stay. It has grown to a significant extent under the present regime of Obama and will continue to be an important business model for US based companies in the coming years irrespective of the fact who becomes the next President. Apart from helping in cutting cost, they also help US companies to fight companies globally. In the ever changing IT world as more and more companies are adopting technology the outsourcing of services continue to grow.
b) IT outsourcing in the domestic market:
The domestic outsourcing market in the US also continues to grow in the wake of the digital revolution. As companies adopt digitalization of their entire work process, work is being gradually outsourced to various small companies in the country itself. This trend in outsourcing has been convenient for US companies as they don’t have to cater to the visa problems. Incentives given by the state government for utilizing domestic employees are also encouraging this process of domestic outsourcing to a great extent.
c) Public Sector IT Outsourcing:
According to a report published in the month of May 2016, public sector outsourcing are on a rise as the US government continuously employ outsourcing firms for their projects. An analysis done by outsourcing consultancy ISG reveals that outsourcing deals have almost doubled in the public sector. The recent push from the US government to generate a shared service environment has bolstered outsourcing deals both in terms of number and duration. An average outsourcing deal now lasts for more than three to four years. As companies are gradually moving to the clouds, adopting mobile technologies and analyzing projects related to big data, efficiency, and expertise from outsourcing agencies are on the rise.
d) Skilled Worker Visas- H1B:
According to a report unveiled by the Information Technology and Innovation Foundation (ITIF), an agency based out of Washington DC, ridicules the myths made popular by the critics of the H-1B Visa program. The report specifies that the skilled workers who are brought in from a foreign country complements the American workforce and is not a cause for their loss of jobs. On the contrary, these H-1b Visa holders are responsible for the creation of jobs in the local service industry which would have shut down in the absence of their skill and expertise. They are also the harbinger of innovation and entrepreneurship.
D2E is an Offshore Outsourcing ecosystem for IT services that provides a gamut of IT Offshore Outsourcing services. It is managed by industry veterans who have set up some of the largest Offshore Development Centers in the world including the likes of GE and several prominent Wall Street institutions.