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Outsourcing: Services
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KAS BANK launches integrated back-office outsourcing service- KAS BANK, the independent European securities specialist, has launched a full backoffice processing service to augment its existing range of clearing, settlement and custody solutions. The new service, provided by KAS BANKs Broker Services Division lead
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After stonewalling for a year and a half, the U.S. Commerce Department has released a report on the issue of offshore outsourcing of service-sector jobs and high-tech industries. "But the 12-page document represented by the agency as its final report is not what was written by its analysts," writes Richard McCormack of Manufacturing and Technology News (MTN). [3]
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Service-outsourcing companies assembled in TEDA mainly engage in BPO, ITO, IC design, E-commerce, and information security, etc. Supported by the relevant policies of the management committee of TEDA, they have gained a certain scale. Construction of the service-outsourcing base will provide an even better platform for the development of these companies.
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Most economists do not view outsourcing as a threat to the economy of any country. Food malls (and even malls in general), for example, may cease to exist were it not for outsourcing. Capitalist trading often involves interactions among different people, which means often tasks and services are delegated to others. Lack of outsourcing may see deficiencies in specialization and division of labor, important elements in the law of comparative advantage, which is seen by some as the basis for why capitalist free-markets are successful in generating economic growth.
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Comparing results from previous DiamondCluster outsourcing studies is telling. In 2004 none of the study participants said they would decrease the amount of outsourcing they were doing. This year, nine percent of the buyers of onshore services and eight percent of offshore buyers said they plan to decrease their levels of outsourcing in 2006.
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This is exacerbated when outsourcing is combined with off-shoring to regions where the first language and culture are different. The questionable quality is particularly evident when call centers that service the public are outsourced and offshored.
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