The fall of the U.S. Dollar and its Implications to Outsourcing
Until recently a number of Philippine companies are scurrying to find clients in Europe following the downward trend of the U.S. dollars in the global market. Following suit are other countries that have invested heavily and is dependent on outsourcing as a means of livelihood for their citizens.
India and the Philippines is a welcome victim in the downward spiral the U.S. dollar is heading to.
Eventually a number of cost-cutting may happen as well as a decrease of profit-margin in the different sectors of Business Process Outsourcing (BPO) companies.
Critics are right when they say that the European Market is now significantly larger than those In the U.S. and is increasingly growing real fast.
While other outsourcing companies looks for ways and means to ameliorate their disposition there is no denying that with the weakening dollar the U.S. can be a competition if they accept outsourcing projects from Europe themselves having the advantage of language and culture thereof the east would have to contend with a more serious form of competition - that is culture wise.
According to sources forty-four percent of companies from Europe outsource most if not all of their IT requirements, while fifty-six percent of all their financial services are also outsourced.
To note the Philippines was voted last year as “The Best Offshoring Destination” by the UK’s outsourcing Market. It could be a win-win situation for the Philippines if they get the whole European Market, but as for now outsourcing countries would have to look out for the U.S. dollars’ steady downhill roll.
About the Author
Floyd Gumpal Buenavente is the Marketing manager for an Outsourcing Firm located in The Philippines (MicroSourcing.com).He also owns brownseo.com a website documenting his journeys in life and the Internet Marketing Industry.
