Offshore Outsourcing: An E-Commerce Reality (Opportunity for Developing Countries)

Abstract

In an attempt to influence their pace of development, developing countries around the world try and influence the rate of investment (especially foreign private investments) in their economy. These countries attempt to influence investor decisions by matching and changing their portfolio with that of foreign investors’ needs. However, to make the country portfolio impressive, a country requires massive investment in infrastructure and other portfolio variables which brings countries at an impasse. This chapter discusses the viability of increasing income as a way out. This leads to another important issue as to how to increase revenue of a country with its limited portfolio of strengths. Recent developments in information technology and the Internet have led to a simple solution to this - offshore outsourcing. Outsourcing as a strategy has been around for many years. Traditionally, companies used to outsource their activities to independent suppliers who were best, but the choice was made from the suppliers located in the vicinity of the outsourcing company for easier coordination and control of the activities of the partner. However, due to developments in e-commerce, distance has become a relative term. Exchange of information in a fraction of a minute, irrespective of physical distance, has made it possible for companies to widen their horizons and look for independent suppliers in different nations — offshore outsourcing.