Chucking the Outsourcing Myths


For people who have been under the impression that there’s a stigma attached to offshore BPO services, there seems to be some news in store for them. The appropriate time has come to chuck out all unnecessary myths about outsourcing hi-tech IT jobs to cheaper destinations.

According to a recent study conducted by McKinsey Global Institute, every dollar spent on offshoring BPO services, the U.S economy gains at least $1.12. Moreover, the largest chunk 58-cents goes back to the original employer. And the U.S. companies perform 30% of Indian offshoring, so money returns home as earnings. The U.S., which had lost about 2 million jobs due to global trade over the past 20 years, has added 35 million new jobs in the past 10 years.

The aforesaid statement proves one essential point, that an offshore BPO service is not costing good technical U.S. jobs. Many services that aren’t materializing are lost not through outsourcing, but through improved efficiencies and business automation. Most of the outsourced jobs are supporting operations that aren’t part of the core competency of the U.S. firms, such as phone technical support, human resources administration and software coding. So, it would not be fair on the part of the U.S. to find faults with offshore BPO services.

Jesmine