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OUTSOURCING, HOW DID IT START, AND IS THERE A FUTURE IN IT?

OUTSOURCING, HOW DID IT START, AND IS THERE A FUTURE IN IT?

Outsourcing has become a modern trend in the global e-commerce industry. It is a business process where companies recruit other companies to perform certain business tasks that are not necessarily necessary but still play an important role and make the company work smoothly. 

The number of companies from different countries that outsource some of their business processes is increasing, even when the corona pandemic occurs and the business community is drastically affected. 

But did you know that outsourcing already existed many years ago?

According to several authors, the term ” outsourcing ” came from the economist Ronald Coase. 

From cultivating the basic “blue-collar” jobs to outsourcing specialized and highly qualified services called “white collar”. 

The outsourcing function first appeared in the 1950s, although the term originated in 1981. In the 1980s,

it began to be recognized as an attractive business strategy. The promotion of outsourcing was mainly driven by the “focus on core competencies” that developed in the 1970s. 

Since then, outsourcing has had a significant and positive impact on companies and in most cases helped them run efficiently.

Today, online outsourcing seems to be driving international e-commerce. 

From outsourcing to companies in your country, also called “local outsourcing”, this business strategy penetrated neighboring countries (nearshoring outsourcing) until it spread worldwide

when companies from the west such as the US and European countries outsourced their business functions to outsourcing partners in Asia (such as the Philippines and India), also known as offshore outsourcing.

Over time, international e-commerce encountered so many challenges, such as the economic struggle exacerbated by the COVID-19 pandemic, recession, inflation, and other economic downturns. 

And as a businessman, you are probably asking the same questions to your business colleagues – is there a future with outsourcing for e-commerce?

Business Process Outsourcing (BPO) experts say that the future of online outsourcing will continue to be secure. 

This prediction proved to be infallible during the pandemic when many companies began to swing until they declared closure and bankruptcy, but the BPO companies continue to operate. Take an example of outsourcing in the Philippines. 

Unfortunately, many companies in the country, especially those affected by the month’s lock. But a large number of outsourcing companies remains robust. 

This is because many companies from different countries need to outsource and continue their operations despite the pandemic. 

And mainly because of the different benefits that outsourcing brings – cost savings are the main reason that prompted them to outsource. 

Companies can reduce their total costs, mainly due to highly efficient Filipino workers with low wages compared to the wages of workers in the West which is significantly higher.

Therefore, without a hint of uncertainty, many business experts stated that the future of outsourced e-commerce, especially in the Philippines, is indeed clear, bright, and has the potential for continuous growth and development. 

Outsourcing online is equivalent to the Internet and modern technology that continues to grow and has become a part of every person’s life. 

Despite the economic headwinds, expect the outsourcing industry to continue to be the most dynamic and fastest-growing sector of the economy in the near future.

Eleena Wills
Hi, I’m Eleena Wills. Being a writer and blogger, I strive to provide informative and valuable articles to people. With quality, constructive, and well-researched articles, one can make informed choices. I cover a wide range of topics, from home improvement to hair styling and automotive.
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