| Offshore outsourcing is the practice of
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| | aims to outpace India and become the next
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| hiring an external organization to
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| | dominant competitor in software
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| perform some business functions in a
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| | outsourcing. It is predicted that China
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| country other than the one where the
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| | will emerge as one of the top three
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| product or service will be sold or
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| | countries for overseas software
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| consumed.
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| | outsourcing between 2007 and 2010.
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| Outsourcing has increased at a rapid pace
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| | Companies are already beginning to plan
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| due to the advancement in modern
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| | their offshore outsourcing strategies to
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| satellite and Internet technologies,
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| | take advantage of China's emerging
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| better connectivity and a constant search
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| | strength as an outsourcing center. This
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| for less expensive labor to cut costs and
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| | includes looking for ways to take
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| achieve competitive advantage. By
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| | advantage of the country's current
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| outsourcing their back office business
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| | software strengths. Some estimates state
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| processes to less expensive nations like
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| | that China outsourcing could rival India
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| China, India, Philippines, Malaysia,
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| | as the leading offshore IT services
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| companies can cut labor costs,
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| | market as early as 2007.
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| concentrate on their core businesses and
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| | The recent flurry of activity that helped
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| strengths, and ensure better customer
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| | put China on the outsourcing map came
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| satisfaction. According to a recent
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| | about partly as a result of government
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| report, US firms have saved nearly US$8
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| | support and promotion, partly because of
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| billion through outsourcing to developing
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| | Japan's push to move much of its software
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| nations like the Philippines
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| | development work to China, and partly
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| There are many developing nations that
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| | because a number of large foreign
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| act as offshore outsourcing destinations
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| | companies -- GE, Microsoft, Dell, SAP and
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| to developed nations. Some of the
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| | HP, for example -- started up R&D centers
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| countries that can be considered as
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| | in China.
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| offshore outsourcing destinations are as
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| | India
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| follows:
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| | One of the major players in the offshore
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| Philippines
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| | outsourcing industry, India has a well
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| The Philippines' key competitive
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| | educated, talented, low cost and English
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| advantage is its people. Philippines has
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| | speaking workforce, excellent IT and
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| a well-educated English speaking work
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| | networking infrastructure, a fairly
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| force and stands out as the world's third
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| | stable political scenario, friendly laws
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| largest English speaking nation. The
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| | and well laid taxes and quality certified
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| attitude, commitment, community, and
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| | software firms. The offshore outsourcing
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| education constitute the key competitive
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| | market in India is ever growing and has
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| advantage especially in the front office
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| | produced many success stories making
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| operations such as customer service and
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| | India a popular offshore outsourcing
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| sales.
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| | destination for IT related and other BPO
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| The Philippines boasts of a huge pool of
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| | services.
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| productive, trainable and multi-skilled
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| | Offshore assignments have moved up the
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| labor force. Filipino Outsourcing
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| | value chain - from data entry to large
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| companies such as AOV Outsourcing service
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| | and complex turnkey projects of 200 to
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| only hire workers that are highly
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| | 300 person years. Almost any service can
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| qualified for various outsourcing tasks.
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| | be outsourced to India, be it healthcare,
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| Government support and the IT
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| | engineering or KPO.
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| infrastructure is a given. Major
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| | Malaysia
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| companies that already operate in the
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| | Malaysia's well-developed infrastructure,
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| Philippines include AIG, AOL, Barnes &
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| | attractive business environment and
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| Noble, Chevron, Citigroup, Dell, HP,
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| | strong government support makes it a
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| HSBC, IBM, Intel, JPMorgan Chase,
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| | rising alternative to India and China.
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| Motorola, Procter & Gamble, Siemens AG
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| | The government's positioning of Malaysia
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| and Trend Micro.
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| | as a hub for services and technology
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| China
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| | innovation has resulted in a number of
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| In recent years, China is rapidly
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| | multinationals locating some of its
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| emerging as one of the world's leading
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| | global or regional operations in
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| suppliers of offshore software
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| | Malaysia. Malaysia has a relatively more
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| outsourcing services due to its
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| | stable political climate backed by
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| incredible development rate. Although
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| | consistent economic growth which makes it
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| India is at the moments the world leader
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| | attractive for sensitive, high end
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| in software outsourcing industry, China
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| | applications in banking and finance.
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