So I ran across the graph you see to the right on this website. There was no source and so I'm not sure what to make of it. In addition, they offered up the following statistics:
- Meta Group estimates that offshore outsourcing will grow by more than 20% annually.
- According to Deloitte Consulting, 2 million jobs will move from the United States and Europe to cheaper destinations.
- Among the different offshore destinations, India has become the number one location for most companies.
- Contract Manufacturing transformed the high technology industry and software outsourcing is about to transform the complete picture of IT & related products in the years to come.
From what I gather, it's an Indian outfit that has a few capabilities, but the statistics give cause to think a second. Here are my initial thoughts and I'd be curious to know what you think.
- We all know that China and India are winning a lot of business in the outsourcing world based on the cheap labor. Is there a quality difference for non-English speakers? Will the "quality" gap be bridged?
- Outsourcing of the HR and IT functions are commonplace. Are sales outsourcing and lead generation outsourcing on the move upward too from their 14% spot? We think so.
- On the graph, what the heck is "All Others"? What other functions are not being done in-house?
- HR and IT may not be very reliant on language. Sales, marketing, and customer service are. Is there really a quantifiable difference in perception in hearing a native English speaker vs. a non-native English speaker on the other end of the line?
It may trouble some that American jobs are being outsourced overseas, but give credit where it's due. India and China have done a spectacular job of generating demand for their personnel. Granted, it may be simple supply and demand, and a cheaper alternative, but they are winning business at astounding rates.