Change the world

Journal for Development and Leadership

Volume 5, Number 1


 

Managing global business competition: The dynamics of offshoring and outsourcing
Wachira, W., Brookes, M. and Haines, R.

Over the years, profit-making organisations globally have been facing increasing competition. Consequently, this has forced management to establish new strategies and techniques to achieve productivity and efficiency. At present many organisations worldwide employ outsourcing in their daily business operations, many of which are outsourced to other countries This study evaluated the global offshoring trends through the use of secondary data collection method. The findings suggest that offshoring can either be a success or failure, or both, due to the fact that the global business environment consists of opportunities as well as challenges. Findings also suggest that both developed and developing countries contract outsourcing companies in foreign countries to facilitate in ensuring certain business functions are performed. India dominates in outsourcing. However, Africa still has a long way to go with regard to being an attractive destination for offshoring. African countries have the potential to grow the offshoring industry.

Offshoring promotes foreign direct investment and contributes to either job creation or job loss as well as skills and technology transfer.

Keywords: Business process outsourcing (BPO); offshoring; outsourcing.