The Growth of the Outsourcing Industry in Thailand
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The impact of outsourcing to businesses is overwhelming. Statistics show that there were about two million outsourced jobs in 2013, which landed in countries such as India, the Philippines, and Thailand. IT (43%), research and development (38%), distribution (26%), and call centres (12%) are among the leading sectors in this industry. The statistics also included the main reasons businesses prefer to outsource. Many want to reduce and regulate costs (44%), get access to resources that the business doesn’t have (34%), and improve business operations and customer relations (28%). Outsourcing vs. Offshoring Many people often get offshoring and outsourcing mixed up. Even though both have the same meaning – sending tasks outside the workplace – it’s best not to confuse them. Outsourcing involves working with a direct third party, such as local freelancers and agencies, through contract. It’s also possible to outsource work without offshoring it. Offshoring, on the other hand, is outsourcing and getting work done in a different country. For instance, a customer service centre in Thailand can serve American clients if necessary.
Outsourcing in Thailand According to statistics released by the Sourcing Line Computer Economics, Thailand ranked eighth in the top-rated outsourcing countries. It received an overall rating of 6.0 and a cost index of 8.2 with an average workforce of 39,000,000. At present, it’s succeeding in the information technology industry despite its limited and lacking infrastructure, privacy and security regulations, and ICT research facilities. Thailand launched an information technology policy called the IT 2000 in 1996 as a strategy to focus on building good governance, technological policy, and information infrastructure in different sectors. It seemed to be successful, as many outsourcing companies today have survived and is staying afloat in the economy. The demand for outsourcing jobs is continuously growing, whether locally or internationally. Thanks to this, more countries like Thailand are starting to improve their local economy slowly but surely.
RESOURCES: Offshoring vs. Outsourcing http://www.diffen.com/difference/Offshoring_vs_Outsourcing PRTR Outsource – http://www.prtroutsource.com/ JOEBM – http://www.joebm.com/papers/120-L00007.pdf /