ABSTRACT
Immense strides in science and technology have given an impetus to outsourcing in a big way. Outsourcing can have a great positive impact on the lives of many if deployed appropriately, by improving people’s careers and lifestyles. Contingencies for rapid business growth and business slowdowns need to be considered. Outsourcing is being increasingly done by businesses for creating strategic value through process improvements quickly and cost effectively. This is a win—win approach because the outsourcing organization pays less and the vendor makes more simply through currency conversion from a strong into a weaker currency. Lower labor rates in other countries can contribute immensely to cost saving. Analysts are of the view that contracting/outsourcing will be strengthened and business opportunities will be created due to key trends like rapidly increasing consolidation and maturity of the industry and further fueled by a large number of mergers and acquisitions.
