So why are some organizations still hesitant in taking that step to outsource work? This could be because outsourcing has become more of a political debate and a tug of war between politicians to get that extra vote. What do companies have to say about this? For most, companies are happy outsourcing as evidenced by all the popular online marketplaces and outsourcing companies in the market. An estimate of the outsourcing market in Europe alone places its worth at more than $9 billion.



Global labor is employing people from anywhere, anytime. A company in Australia can employ a marketing agency in Romania. They need not see each other or meet to get the work done.

The three drivers of global labor can be summed up as

Globalization is the result of innovation and technological progress. Economists recognize that nations can gain from free movement of not only goods but services, capital and labor across global barriers. Labor markets have become more integrated, making it possible for a better economic growth.

Technology has gone one step further and made it possible to not only get work done from another country, but get the work done remotely from that country. Employers do not need to see the staff they are hiring and in most cases, the job gets done with both of them neither meeting nor seeing each other. Qualified service providers are able to deliver projects in the timelines specified, most of the time. Having someone else do all the repetitive business processes enables them to focus on more important strategic programs.

Competition In order to keep up with the competition, companies must reduce their costs and improve their revenue. Each of the products in today's market has thousands of competitors, from toothpastes to cars. New companies need to find creative ways to produce and market their product or service against the bigger and more established competitors.

Conclusion

A new survey by Gartner of 300 companies in Western Europe shows that the proportion of companies with moderate or high levels of outsourcing will grow from 67 to 81 percent by 2008. The survey also showed that less than a third of companies claimed to have a formal sourcing strategy and instead made outsourcing decisions on an ad hoc basis.

Employing a global labor cannot solve all of a company's problems. Some of the issues which the companies face could vary from communication, time zones and expectations set and managed. But in the long run, companies need to improve their bottom line and scale operations up or down as the conditions in the market dictate. Getting expert professionals who are accessible from anywhere in the world, is one way of utilizing technology for a fraction of what they would otherwise be paying. After all, we as consumers would like to get products and services at prices we are able to afford.