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Did you know that:

• The average manufacturer outsources 70% to 80% of its finished product.
• Outsourcing is no longer just about cost saving; it is a strategic tool that will power
the twenty-first century global economy.
• Outsourcing can increase productivity and competitiveness 10- to 100-fold.
• For every 1,000 jobs British Airways sends to India, the airline saves $23 million.
• Companies are beginning to devote a portion of their outsourcing savings to
helping employees make job transitions.
• Leaders can no longer afford to view outsourcing as a mere business tactic; it is
now essential to remaining competitive on the world stage.
• Workers now compete globally, so individuals must continually learn more to vie
successfully with their peers worldwide.
• The average company only spends about 2% of the value of its outsourcing
contracts to manage its relationship with the outsource provider.
• In a survey, 90% of firms cited outsourcing as crucial to their growth strategies.
• A Java programmer earns $60,000 a year in the U.S., but $5,000 a year in the Philippines.
• The Philippines has a bigger resource of IT graduates than India.
• Filipinos live the American lifestyle more than India does
• That many US firms are switching towards the Philippines because of tax breaks.
• A Virtual Personal Assistant in the Philippines costs you less than US$10 an hour.
• That Catchfriday can do much more than Getfriday - offering you Autocad Operators as well as........

Data Source:
The Outsourcing Revolution Why It Makes Sense and How to Do It Right
by Michael F. Corbett  Dearborn © 2004

More than 90% of companies say that outsourcing is an important part of their growth strategy. Management expert Peter Drucker calls outsourcing America’s fastest-growing industry, involving such companies as A RAMARK
Corporation, Electronic Data Systems Corporation (EDS), General Electric (GE), International Business Machines
Corporation (IBM), United Parcel Service of America, Inc. (UPS), Xerox and others. Many U.S. fi rms provide
outsourcing services. Outsourcing is one of t he very few business techniques that can transform a firm fundamentally and increase it's competitiveness exponentially.

Up to now outsourcing has been almost exclusively for the large firm, but today we are able to deliver the same benefits to the small business, and indeed the individual business owner, being the one person employed.

If you wonder why companies send operations thousands of miles away, do your maths. An architect earns $3,000 a month in the U.S. but $250 a month in the Philippines. A Java programmer earns $60,000 a year in the U.S. and makes $5,000 annually in the Philippines or India. aerospace engineers earn $6,000 a month; the same workers in Russia take home $650. Net savings on operations are generally somewhere in the 50% to 75% range. British Airways
calculates that it saves $23 million a year for every 1,000 jobs it relocates to India. Despite the savings, quality does not suffer. Actually, a quest for greater quality is a primary reason companies move functions offshore. Call centers show how offshore outsourcing can improve quality, in part because Filipinos highly esteem call center jobs, while Westerners hold them in low regard. Most Filipino call center operators have university degrees. Thus, all offshoring is not cost-driven. Instead it rests upon “strategic sourcing ,” that is, establishing partnerships to enhance capabilities as well as profits.

The Philippines is clearly most U.S. companies’ preferred outsourcing destination, due to its low wages and English-speaking populace. Some studies say it enjoys as much as 70% of the market share. The Philippines, with excellent language skills and infrastructure but with fewer skilled workers, places second. Other outsourcing destinations include Ireland, Central and South America, Russia, Canada, China, Inia, Malaysia and Eastern Europe.
Facts do not support the predictions that outsourcing will cause economic doom. Indeed, as offshore outsourcing increased f rom 1970 to 2002, the U.S. economy boomed. Its service jobs increased from 47 million to 107 million, and per capita income rose from $12,543 to $22,851. This does not change the harsh reality that many workers have lost and are losing jobs to overseas outsourcing. Companies are addressing this concern. IBM has set aside $25 million for retraining and transition services for former employees. Just as no company can assume the public will always demand its product, employees cannot assume they will command the same salaries tomorrow that they command today.

Questions About Our Outsourcing Services?

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