The Social Benefits of Offshore Outsourcing

October 26, 2016 6:11 pm | Updated 5 years ago.

Offshore outsourcing industry entering the Maturation Phase

The Offshore outsourcing industry is slowly inching towards the maturation phase. Asian countries like the Philippines have turned into major outsourcing destinations. Development of these countries to a great extent is attributed to the offshore outsourcing deals. In order to cut cost and leverage other benefits, developed countries turn to these Asian countries for offshore outsourcing. Country heads are recognizing the positive aspects of offshore outsourcing; however, it still suffers from a long-standing image problem. One of the major issues in this year’s US Presidential Election is offshore outsourcing. As the debate rages on, people tend to overlook the positive social outcomes of Offshore Outsourcing, particularly in the developing world.

Offshore Outsourcing benefiting the society

International aids often fail to provide a better life to people living in the developing countries. This is where offshore outsourcing steps in. Offshore outsourcing has been the major cause of development in many countries. In the Philippines, outsourcing has been recognized as one of the major tools for creating jobs and in the process removes poverty. Various another region in the globe like Africa, Central and South America, Southeast Asia, have hugely benefited from offshore outsourcing.

Organizations are also working towards renaming ‘outsourcing’ as ‘impact sourcing’. This term was initially coined by a social organization Digital Divide Data that promotes outsourcing services in developing countries. San Francisco-based Samasource  is an organization which is also working towards providing call center jobs to unemployed youths in the developing countries.

Business as tool for poverty alleviation

Development in digital and telecommunication facilities is directly linked to a rise in offshore outsourcing. The rise in offshore outsourcing creates new employment opportunities and pulls out a few hundred from the depths of poverty especially in the developing countries. The past one decade witnessed the growth of micro –finance as a tool to provide capital to women entrepreneurs and small business owners. However, micro –finance institutions alone cannot bolster social well- being. In order to bring in change at the country level, large players are required.

Offshore Outsourcing generally opted as a business process by organizations in order to reduce cost and enhance profit. So, there will be a conflict of interest to fully embrace a socially responsible business but the involvement of these organizations as local employees, clients, and customers, in the long run, will definitely generate social change.

Progressive Business Process Outsourcers

Organizations have also realized that they need to change their strategies in order to sustain .Studies have also highlighted that promoting employee well- being, community development, and corporate social responsibility is directly linked to employee retention and service quality. It was found that progressive BPO’s are taking a step further to improve the life of employees and their families. They are also motivating employees to volunteer in their social responsibility work directed towards the community. The idea is to put forth the fact that organizations are simply not money making machines but they also want to give back to the society .Organizations care about their immediate environment and are responsible towards the community that they cater to.

These investments directed towards the community are simply not altruistic in nature; rather these investments, in the long run, create value for the organization. More and more technology heavyweights in the Silicon Valley have become socially responsible. They are aligning with these progressive BPO firms to bring about a social change and also to enhance the quality of service that they provide. The challenge, however, lies in changing the perception of the outsourcing industry. Strengthening of offshore processes to improve the quality of delivery, adherence to schedule and SLAs, change management and program management is the buzz word. D2E Consulting, with its established network of consulting and niche delivery partners, is focused on value- driven outsourcing.