Out Tasking

Leveraging time and distance to outsmart Compitition!

If the above phrase surprises you, you are not alone as most businesses have woken up to the idea of out-tasking in the past two decades. Improvements in satellite technology and the advent of the internet helped companies to out-task development and back-office work to low-wage economies that possessed English speaking technically skilled manpower owing to their colonial legacy and sound higher education system.

Out-tasking helps companies to fall lower than their counterparts when economic calamity strikes and rebound higher than others when the economy is on an upswing. Workers in these low-wage economies tend to have strong work ethics and are quite committed to the task at hand.

• These low-wage economies offer the most competitive prices as competition between these countries in the eastern hemisphere and the interplay of market forces have ensured  that prices have remained stable and have not experienced any spikes in the recent past.
• The famous  ‘Iron law of wages’ advocated by business economists which states that wages at the bottom of the pyramid tend to stay at the same level is at work here.

Both the above factors have ensured that companies have managed to survive the global economic downturn as labor costs can now be matched to the spending power of companies in the developed world.

Inspite of extra taxes being levied on US companies that have ignored local hiring and opted for out-tasking, there has been no going back on the decision to out-task ancillary and in some cases even critical business processes to ensure the survival of the enterprise.

• By leveraging the expertise of vendors like us, companies have realized that it makes sense to host web applications in the US as it offers the lowest bandwidth charges.
• But the development and maintenance of  both desktop, mobile and web applications is done in low-wage economies to ensure that the input costs of the enterprise are just a fraction of the revenues and they can accumulate a revenue surplus that will help them to expand and execute bigger and better projects.

Transnational companies have realized that if they don’t develop a significant footprint in these low-wage economies, someone else will and they will have to bite the dust in a winner takes all world where being number two does not count as you not only have to be the best in your country but the best in the world in order to stay competitive in the long run.