It is undeniable fact that low labor cost is the prime cause of outsourcing jobs to India. US, Canada, UK and European countries will benefit from outsourcing to low labor cost economies and exploit the benefits of globalization.

According to a leading HR consultancy, outsourcing to India, Philippines, Taiwan, Bangladesh and Pakistan would step up in coming years. After the great success of outsourcing to India, other labor-intensive Asian economies will also be tested. Western economies have realized the benefits of outsourcing, which is not only low labor cost but also the most acceptable results. It predicts huge turnout of outsourcing as they will be facing cut-throat competition from across the world.

Since the cost of production is exceptionally high in the developed economies compared to developing economies, customers are now getting reluctant to pay high prices. This situation is now forcing organizations to find some other locations for getting job done to survive in the business, it added.

“The back-office concept is growing exponentially and likely to outsource non-customer facing activities. This growth of globalization would continue till 2010 ,” agency said.

According to The Herald, savings generated by such savings from outsourcing jobs like India, could be reinvested in the improvement of high value services like “mass affluent”.

Financial institutions and other companies are now gearing up to take up the challenges from fast emerging economies like China and India, in which Knowledge Process Outsourcing (KPO) is growing much more rapidly than in the West, agency said.

“Outsourcing industry must look at expanding especially designed market for low-cost, high volume businesses.”

Agency further expects closure of around 700 European banks in coming three years and due to outsourcing to Asian economies.

The report provided by the leading HR consultancy is based on survey taken of CEOs at 175 leading financial service organizations. 65 percent have highlighted outsourcing and globalization as the biggest issue their organizations are facing.

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This release was published on openPR.