Offshore Outsourcing:

In the early of 90s, a number of large software companies in the United States poured into the emerging countries in Asia like India, China, to make use of cheap labor costs in order to create advantages of competition. Many major American companies have built factories and product R &D centres in Asian nations; and have been increasingly thriving due to successful application of outsourcing business model.

A typical example for offshore outsourcing was the establishment of Bangalore high-tech zone - the capital of Karnataka State in southern India, was dubbed "Silicon Valley of India" - an ideal location chosen by software Western European companies such as IBM, Microsoft, Intel, Sun Microsystems, Dell, Cisco, Oracle , etc. Even Reuters - a well-known media in the U.S. also chose Bangalore as the headquarter for outsourcing activities to collect financial information of big companies in the world. The transfer of a part of work to India helped Reuters reduce a mixe variety of costs. With a salary of only one-fifth compared to paying for reporters in New York, this enterprise saved a great deal of wages without cutting staff in the main office.

However, because of the labor cost in the software sector in Bangalore has been growing rapidly while infrastructure in this area was still in weak condition so Bangalore was no longer as popular as before. China, Russia, Brazil, Vietnam and so on is becoming more attractive places due to cheaper labor cost and better quality services.

Outsourcing within the national territory:

In addition to information technology, outsourcing also is present in many other common areas. In the U.S., more than two million labor contracts of American citizens (including recruitment, firing, payment and training) are managed by companies specializing in human resources management. The form of outsourcing in this country usually increases to 30% per year and allows customers to save up 30% of the cost.

Outsourcing market is developing strongly all over the world. Many companies have been thriving in the field of providing this appealing service such as sanitation, buildings or offices protection, network system management, etc. Outsourcing raises a lot of new jobs that businesses may not wish to put on the list of fixed full-time jobs.

In Vietnam, the form of outsourcing iscurrently used by many businesses. For large enterprises, popular outsourcing services are office cleaning, security 24/24, full office shipping and so on. The newly small companies tend to use outsourcing services about accounting, tax reporting, network administration or installation, computers or office equipment maintenance, etc. In the publishing, the outsourcing of translation and editing are also quite common. Network of stranlating collaborators has helped publishers save a remarkable amount of the cost in human resources management.