A growing number of American companies have turned to outsourcing as a means of streamlining their operations. From an outside perspective, it may seem like business process outsourcing to places like China, India and the Philippines is taking away valuable dollars from the US economy. When viewed from the inside perspective, however, offshoring certain business processes actually enhances the economy and creates a variety of meaningful employment opportunities onshore.

Reduced Overhead. The goal of business process outsourcing is to save money. Offshoring allows American businesses to pay lower market wages for tasks like call center support or IT support. The money saved on payroll significantly reduces overhead. Subsequently, the valuable dollars that are saved on overhead can be reinvested into the company, growing its size, market share, and revenues. Take, for example, a software developer that outsources its call center functions to a place like Davao City in the Philippines. The market wage for virtual assistants and call center agents in the Philippines is less than half what it costs to hire an American employee with a similar skill set. The money the software developer will save by outsourcing to the Philippines can be invested in research and development or marketing initiatives to stimulate the American economy.

New Responsibilities and More Effective Management Positions. Business process outsourcing does eliminate the needs for entry level employees in call centers on American soil. However, it also creates unique opportunities for employees to take on increased responsibilities at home. Business process outsourcing also generates the need for skilled managers in positions that will pay more than a run-of-the-mill call center job. For example, a major retail store might outsource its call center responsibilities to a place like Davao City in the Philippines. While the majority of the call center work will be done offshore, there will be a need to put several managers in place to collaborate with employees in the Philippines and ensure that goals are being met. These management positions will pay much more than a traditional call center job, enabling these employees to utilize their greater expendable income to stimulate the American economy.

A Competitive Edge. Business process outsourcing can actually make an American company more competitive in the domestic and international arenas. A call center manned in the Philippines can be kept open 24 hours a day to provide expert service to customers. In addition, outsourcing can also help companies learn how to develop better products and customized services to target consumer markets.

Business process outsourcing actually creates opportunities for American companies to take on greater challenges and develop higher paying positions on the home front. It is clear that offshoring is a new approach to business that will create unique opportunities at home and abroad.

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