Outsourcing has become one of the most dominant business practices all over the globe. Since almost all industries in the world are in competitive global area, there is more demand for high-quality and more diverse products. This is where outsourcing comes in: there are certain segments the supply chain that are passed on to outsource partners so that the whole process ensure more quality and efficiency. This means that ultimately, the consumers are the bigger winners.
At the same time, this trend of outsourcing services has given rise to new needs for industries, such as better communication. Firms have needed more efficient methods of communicating with other firms since, at times, they need to correspond with the service companies in order to clarify specifications or ensure prompt delivery. There is a need for dependable telecommunication because outsourcing services rarely happens within borders. Many businesses decide to outsource from low incomes countries where the costs for their services are considerably lower. For an example, clothing outfit H&M outsource production to Bangladesh and China. Thailand is known for producing high-quality T-Shirts.
It is also evolved into a competitive market for outsourcing providers. Luen Thai has been continually expanding its operations to absorb the supply chain process of Ralph Lauren which means they will make more money while letting Ralph Lauren save money on production and shipping. Moreover, shoe manufacturers in the Philippines, for example, have been losing business to Chinese producers. One report mentioned that 60% of shoes produced in the Philippines are outsourced from China.
Therefore, if there is any indication of the world becoming a more globalized society, then the trend of outsourcing services is it. For one, this trend makes things more difficult for companies since various factors like the legal system, trade barriers, and cutthroat competition makes growth almost impossible. Nevertheless, this also permits brilliant prospects for starting businesses. The true winners in this trend are the consumers, who will ultimately benefit from high quality, and better-priced goods.