Many Big services oriented businesses outsource to Bangladesh, where there is a competitive supply of educated workers who are skilled in IT and fluent in English. The advantage of this approach is that the client company can save costs by freeing up resources such as office space for other activities and leave the personnel department of the third party company to handle recruitment costs. Similarly many manufacturing businesses outsource to the Far East and East Europe which has heavy industries and factories but where English is perhaps not so widely used.
In many cases, the supply of suitably skilled workers is unavailable in the client's host location and therefore the option to outsource to Bangladesh where there is a more readily available supply of skilled workers would save costs by removing the need to provide training from scratch. In this context, software outsourcing such as web design outsourcing and IT outsourcing is an increasingly popular trend within the software industry in the UK where there is a skills shortage making the cost of hiring an IT professional unaffordable.
IT outsourcing can involve the turning over of responsibility to an outside firm the company's entire IT department such as hosting, maintenance, software development and technical support. However, many companies choose to partially outsource IT functions. The client company may at a later stage choose to have more or fewer departments outsourced.
IT outsourcing can significantly lower the costs to the client's company while matching and often increasing the end product quality, leaving the company better able to anticipate future costs and focus on other key functions. On aggregate, the cost savings made allows the company to expand their services and therefore benefit the economy as a whole.
In many cases, the supply of suitably skilled workers is unavailable in the client's host location and therefore the option to outsource to Bangladesh where there is a more readily available supply of skilled workers would save costs by removing the need to provide training from scratch. In this context, software outsourcing such as web design outsourcing and IT outsourcing is an increasingly popular trend within the software industry in the UK where there is a skills shortage making the cost of hiring an IT professional unaffordable.
IT outsourcing can involve the turning over of responsibility to an outside firm the company's entire IT department such as hosting, maintenance, software development and technical support. However, many companies choose to partially outsource IT functions. The client company may at a later stage choose to have more or fewer departments outsourced.
IT outsourcing can significantly lower the costs to the client's company while matching and often increasing the end product quality, leaving the company better able to anticipate future costs and focus on other key functions. On aggregate, the cost savings made allows the company to expand their services and therefore benefit the economy as a whole.
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