Outsourcing company

Even with the global financial crisis, outsourcing seems to be one of the few choices that continue to be promising. There is always something alluring about tapping outside talent to make them work for you. How do you go about it and how do you start outsourcing?

Determine which service or product you wish to outsource. Ideally, a service or product that requires more labor or lengthy processes are the best ones to outsource because your company can save valuable time and effort when these are outsourced.

This is when your chosen outsourcer will likely provide you a free trial. This is also when you discuss your expectations and standards, requirements, delivery times, and other things that you wish to be carried out. It is imperative that you share these details with your chosen outsourcing partner in order to generate the best output. This trial period will test your outsourcing partner's strengths while at the same time allowing you both to iron out possible kinks before going into full production mode.

Due to the fact that the Chinese middle class is expanding so rapidly, and by middle class I mean anyone making over $1200 annually, which now accounts for about 470 million people out of the 1.3 billion reported population of China; you can expect Chinese labor rates to rise. And because Chinese labor rates are rising you can expect more outsourcing to places like Africa, India, Indonesia, Peru, and Pakistan were labor rates are still very cheap.

In fact, we recently noted that Wal-Mart is carrying socks from Pakistan now instead of China. Well, we shouldn't say instead of China, because they still have Chinese socks, but now side-by-side on the shelf are Pakistani products. Likewise, we can expect continued expansion of the electronic arts industry in India, as well as more new outsourcing to India in the future than to China.

This does not mean that as the global economic recovery takes place, that US consumers will not continue to buy Chinese products, they will, of course they will. It's just that, we will start to see other nations competing due to the labor costs. China of course has many advantages because they are developing the infrastructure needed to handle the outsourcing of all the first world nation's needs. We expect these trends to continue in 2010.

On the domestic front we see trends in outsourcing continuing, as corporations expand and tap into the abundance of small businesses ready to supply them with products and services. We should expect continued outsourcing from large companies that are trying to impress Wall Street to keep their stock prices moving upward all throughout the business expansion period.

Additionally, we can expect those corporations that are sitting on piles of cash to offer advanced payment to small businesses for steep discounts in their outsourcing needs. We might very well also expect many of the Fortune 1000 companies to buy out their smaller vendors that they have been outsourcing to when the time is right.