• 1-(800) 510-9053
  • 1-(415) 259-6503

Why Outsourcing Services Are Immune From Rising Oil Prices?

Jun1



The worldwide spurt in oil prices has many critics sounding the death knell of the outsourcing services industry, but if we properly analyze the situation, we can easily see that most of these claims are unfounded. Rising oil prices have certainly increased operating costs in developing countries such as India that are major outsourcing hubs, but what is also true is that the increase is limited mostly to the manufacturing sector. The nature of outsourcing services is such that the only major requirements are human resources and IT and Telecommunications systems, prices of which have remained relatively more stable ever since global oil prices crossed the $100 per barrel mark.

Outsourcing hubs located in developing countries such as India have thus been able to maintain the desired cost competencies, which is the main concern. Experts have predicted that oil prices will continue moving northwards in the coming years, but even then the overall affect will be relatively less in case of the outsourcing services industry. Outsourcing firms will benefit from prolonged immunity also because most of them are continuously moving up the value chain by making new offerings such as business transformation outsourcing and business process reengineering. All of this bodes well for the future of the outsourcing services industry.



Related Posts

  • 10000
    Business transformation outsourcing might be a recent addition to the list of available outsourcing services, but looking at its growing popularity among businesses worldwide, it's likely that it will become hugely successful in the near future. In just a few years since the concept was implemented successfully for the first…
  • 10000
    The latest news about the decision by the United Airlines outsourcing over 630 union jobs to nearly 12 U.S. Airports is a clear reflection of the increasing popularity of outsourcing. What is Outsourcing? Before delving into the reasons for popularity of outsourcing services, it becomes essential to understand what exactly…
  • 10000
    Business process outsourcing services provide wide-ranging benefits such as cost savings, efficiency improvements and quality upgrades and that's one of the main reasons as to why outsourcing has become hugely popular worldwide. The global business process outsourcing (BPO) market is currently a staggering $148 Billion, something that provides compelling evidence…

no Comment

Telegenisys Inc. © Copyright 1999-2017 All Rights Reserved             Privacy Policy  |  Site Map