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There is a shift in the global trade from the West to the East, "The emergence of outsourcing in Asia". What is the reason for world countries targeting the Asian continent? Is it again divide and rule or a boom for the Asian Continent? By divide and rule we mean, are they trying to keep us busy by outsourcing those works that are not intellectually challenging or is this phenomenon mutually beneficial?
Why has the outsourcing and off-shoring activities increased? Is it because the First World market has reached maturation or it is just that the companies out there are trying to tap a new market?

"Asian Economy is the new engine of growth," says Michael J..Roux, Chairman of an Australia-based Private Investment Bank. India, Japan, Taiwan, China and Singapore are definitely reshaping the world’s economy. The recent inflow of foreign investments into this part of the world is further fuelling the growth of Asia’s economy.

India's abundant, high quality and cost effective services and its vast resource of skilled software human resources have made it an attractive location for global software clients. Other countries like Malaysia, the Caribbean, South Africa, Hong Kong, etc., have also seen some ITES activity. However, the small size of their talent pools and lack of reference customers severely constraints their ability to emerge as hubs. The Indian ITES industry is set to move well beyond contact center, low-skilled work driven by the early success of the first movers. Today, India is undoubtedly the pre-eminent and preferred destination for off-shore IT services (BPO market).

In today’s emerging economic conditions, outsourcing is no longer an option but a necessity. Outsourcing is graduating into an unstoppable trend in the software industry. The force driving this trend is typically cost reduction and organizational restructuring. As international companies engage Asia to do increasing business, they are finding that it needs special abilities to be successful in a very challenging market. When there are huge opportunities, the risks are equally high.

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* Contributed by: -
B. Pothi Babu & Biswarup Das,
Both currently pursuing MBA from BIM, Trichy,
Article published in KRIYA, March'06 Issue, the monthly magazine of the institute.