Category: Strategy

Gone are the days when the fate of business was only decided by either self willed freelancers or local employees. Now dedicated employees are the ones who call the shots. And they do it rather well. Dedicated employees have given employers a chance to explore a whole new dimension in the realm of recruitments, but like any other recruitment process hiring dedicated professionals can prove to be extremely taxing and tedious, if not done skillfully. Even though most of the dedicated employees are remote employees, recruiting them still adds to the woes of an employer because of a lack of direct supervision. Hiring and interviewing dedicated employees Usually dedicated employees work from an economically cheaper location and most of them work from their parent offices, which still makes it important for employers to evaluate the psyche and the acumen of a candidate for the desired job. Recruiters must keep in mind that getting the right person for a job is as important as assigning the right job to the right person, which calls for a deep and sound understanding of human psyche. While recruiting you are not expected to be a pro at understanding human behavioral patterns and psyche, but there are a few ground rules which can help you take the right decision and forestall the financial implications that come along with a wrong decision. Now, as we proceed, it must be made clear that interviewing dedicated employees isn’t a cakewalk and assessing a candidate’s strengths and capabilities without a psychological evaluation is mostly futile. Basic psychological evaluation done at the stage of interviewing can work wonders for you in deciding whether the candidate fits the bill or not. Psychological assessment can very well avert the woes that come from hiring a misfit candidate. Employers with little idea about human psyche find getting a grip on psychological assessment extremely unnerving. To ease this discomfort, you can hire a clinical psychologist. Moreover, most of the assessments listed below can only be administered by a registered psychologist. Most of these assessments are done with the help of projective tests which are known to reveal underlying cognitions and unconscious matter that form the basis for understanding human behavior.These tests help in understanding a person’s character and his response to basic stimuli, which in turn can be used to predict the person’s behavior in certain situations. A good understanding of a candidate’s behavior can go a long way in making the right decision; it can not only save you from spending sleepless nights in the fear of not being able to get your work done, but also increase the productivity of the company. Here are 4 of the most important projective tests that you could use to hire dedicated employees: • The Rorschach Inkblot Test This technique is an indispensible part of psychological assessment. Created by Swiss psychologist, Hermann Rorschach, this psychological test involves interpretation of inkblots to analyze a person’s personality and emotional functioning. This is widely popular for determining a person’s thought disorder especially when the person is reluctant to discuss his thought process, a similar situation is more likely to occur during an interview where candidates intentionally veil their true appearances and try to appear idyllic. This psychological test can be used to crack open through them and analyze their emotions. This test is believed to furnish in-depth knowledge about the personality structure of a candidate, which can help in determining a suitable job role for the candidate to optimize the productivity. While interviewing it is extremely important to understand a candidate’s capabilities and his disposition towards the job in question, this can be achieved with Rorschach. Selecting the wrong candidate can not only spell doom, but can also invite stress which is completely uncalled for. Make sure this psychological test is practiced by a registered clinical psychologist. • Thematic Apperception Test Another personality assessment test which is famous for its promising results is the Thematic Apperception Test. This helps to determine a person’s disposition for a particular job or occupation and also throws light on the motivational stimuli for a candidate. With the help of this test a trained clinical psychologist can gauge a candidate’s need for achievement and power by evoking the subconscious state. More often than not, candidates have to take up this test when they apply for jobs related to military, academics, law enforcement and bureaucracy. Clearly, for such jobs astuteness is more importance than intelligence, which can be easily evaluated by such projective tests. This test involves interpreting 10 out of a total 31 cards. All of these cards have pictures of people in different situations. These pictures are necessarily thought provoking and are capable of varying interpretations, they are designed so to evoke underlying thoughts and emotions of the candidates. The subject of this test i.e. the candidate must interpret the images in his own way and develop a story based on the picture shown. A psychologist may also ask the interviewee to describe a blank TAT card. In an interview, one important quality that every recruiter looks for is a candidate’s ability to solve problems which in recent times has become a prerequisite, lest the employer grumble under his breath with frustration. Being an employer you do not want to address all the trivial problems of your employees, hence most of the recruiters make sure that the dedicated employees that they hire have some knack for problem solving. Thematic Apperception Test is a great tool to explore the problem solving ability of a person and hence it has been mandated while selection of employees for important jobs related to international and national importance. • Draw-a-Person Test Earlier the use of this test was only limited to kids for getting a better judgment of their personality traits, but later it was developed and modified to measure the intelligence levels in adults. This psychometric test can also reveal the differences in personalities of people, a tool which comes handy while analyzing whether a candidate’s personality

Dedicated hiring is considered the best model of engagement in comparison to your in-house human resource. As a matter of fact, it confers flexibility in selecting your resource as and when needed. Moreover, it keeps you away from chasing offshore freelancers with lack of commitment. As an outsourcing business agency, dedicated hiring services save you a great deal of cost besides ensuring that the quality of work delivered is of superlative degree. This engagement model is widely preferred by agencies which require full-time based dedicated teams. You can hire such teams for varying needs including but not limited to product and software development, web application development, ecommerce websites, JAVA/PHP based programs and so on. After your initial inquiry, the offshore agency engages in requirement analysis and accordingly you can hire a dedicated team of individuals committed to you. Dedicated hiring ensures a seamless handling of your offshore projects with multitude of gains to your business: • Hire the best talent available – Dedicated hiring gives you the option of choosing the best talent which is in-line with your programming needs. And you get specialists in nearly all the fields including SEO, .net, magneto, JAVA, PHP, mobile application developers and many more. You can also increase or decrease the size of your team with time thereby optimizing your operational cost. • Axe your overheads – Your outsourcing vendors take complete care of your dedicated team. Support infrastructure like hardware and software, office space fall under the ambit of your service provider. Thus, it negates your focus required on unnecessary tasks while concentrating more on the actual task. • Remotely manage your offshore team – The outsourcing vendor equips your dedicated team with the necessary communication support including video conferencing, PC sharing, high speed data sharing, and mobile connectivity so that you gain a real control over your virtual employees by monitoring them remotely. Moreover, you have full control over project planning while the knowledge is kept under your purview. • Bypass legal boundaries – Your dedicated resource may be spread across the globe serving different needs. Irrespective of that, you save yourself from delving into legal issues including government clearances, taxes or company registration specific to the laws of the land whether it is Asia or Latin America. • Control over data security – Virtual employees in developing countries have access to sensitive information of your business. But with cloud-based servers owned by your company, whole information is stored within your servers. Moreover, data security is of utmost importance to the well-established outsourcing vendors. • Accountability – The outsourcing agency is entirely responsible for keeping a check on the workers and their functioning. And they make sure that the dedicated team working under your company is aligned to your instructions and developmental goals. Besides this, any goof ups and irregularities by your team are daily reported to you so that you can take timely action. • Staff management – The virtual team working beneath you is under a contractual agreement with the outsourcing vendor. Consequently, all HR related issues like employee leave and employee benefits are subjected under vendor’s jurisdiction. Whether it is attrition rate or salary hike, none of it is your concern as far as your work is being delivered. Furthermore, you need not invest in annual bonuses, insurance and medical allowances. • Nurture long-term relationship – Your in-house team works in tandem with the offshore dedicated team. Continuous working over various projects develops a level of understanding between culturally different teams thereby nourishing strong working relationship among them. • Save your time and money by hiring a dedicated resource team – Due to lack of experience and expertise, it is advisable that you invest in dedicated resources as the whole arrangement is cost effective as compared to your in-house resource. And it is a well known fact that IT employees need regular training to keep up with the technological advancements. By outsourcing your services, you save the entire cost of training. Though dedicated hiring comes with numerous advantages for your business, you will need to make sure you are working with the right agency. Make a thorough check before associating with any offshore service providers. Ask for their credentials, verify them and then proceed on a contractual basis.

Sales collateral is the support material used by the salesperson of the company to make the overall selling process easier. Whether you are selling a product or a service, sales collateral forms an integral part of your company’s marketing strategy. Growing curiosity and awareness among customers about different brands necessitates that your company creates a right mix of collateral that enhances not only your sales but also builds your brand image. As a company, your business may be dealing either with B2B or B2C customers.  Given the circumstances, utmost care should be taken in designing sales collateral keeping in mind the corporate identity of your brand. Let us see how your sales collateral should look like: • Website content – Every company big or small must have a web presence as it is the first thing which comes to customer’s mind to know about you. The website content should not contain vague or copied information. Maintain originality and quality of the content posted. Also, make sure the website loads quickly and is easy to navigate. Your website should be interactive in nature to let the customers post their queries, chat with your sales executive and even email you. You can make a great website by hiring a professional designer by closely feeding him details about your company, product or service. • Blog – Blogs have gained huge popularity among customers as it gives you the opportunity of sharing knowledge with your prospects. Blogs don’t talk specifically about your products rather they emphasize more on the broader picture of the market, innovations, scope of advancement and many other interesting topics you may think of. It is not limited to anything specific but it should be interesting enough to generate revisits. Do not forget to include social media sharing buttons and RSS feeds on your blog to enable wider circulation of your blogs. • Presence on social media platforms – It is extremely important to be present on social media platforms like Facebook, Twitter, Google + etc to engage directly with the customers through comments and likes. Customers interact freely on social media and are in a better position to express their true opinion about your product. In addition, it gives them the opportunity of sharing the links of your website/blog or product information with their friends and family members. • Visual aids – Customers ought to remember what they see more than what they hear. Visual aids may include both electronic and traditional/paper medium. Your visual aid may include sales presentation, word documents, other computer files and product videos in electronic form while it may include technical data sheets, brochures, catalogues, direct mailers etc in paper media. Traditional materials can also contain product pictures, bar diagrams, charts to add to the sales process. And fortunately, all traditional content can be presented in the electronic format. To add to the visual image, corporate identity package plays a crucial role in representing your business professionally. • Webinars – Webinars are catching up faster than any other medium to assist your sales team in organizing group demos of your product and explain about the services you offer. Webinars provide a virtual experience of sales presentation to a group of customers. It is a two-way communication platform wherein customers get an equal chance of raising their queries. • Sharing customer success stories – Highlighting the customer success stories brings a smile on your customers’ face. They try to experience the same satisfaction virtually as generated by the satisfied customers. To verify the authenticity of your sources, you can even request some of your old and loyal customers to share their detailed experience and their contact details. You can share their stories through your website or sales presentation. • Awareness surveys – The product awareness survey is an indirect method of generating awareness level among your leads. It is usually in the form of structured questionnaire. The surveys enable your salespersons to have a clear idea about what the customers think or know about your product or company. It also enables them to be prepared for a better confrontation with your prospects. So, though such surveys may not be directly given by the salespersons but they do form an essential part of your company’s sales collateral.

Before we get to the bottom of an astounding estimate that flexi-hiring in India is going to increase by 20% by 2020, there are a few facts and figures you need to take notice of. 10% of overall workforce in India could be working as a flexi staff by 2025 and another 1.3 million people employed in Indian flexi staffing will form 3% of organized sector employment. The actual number of flexi workers in India is projected to touch 9 million by 2025. Another important fact to note is that about 79% of flexi staff in India falls in 21-30 year age group which indicates flexi hiring for entry-level positions is the preferred choice for employers. Why choose India? Despite the global slowdown, there is a steep rise in flexi hiring among IT companies in India. There is also a rise in just-in-time hiring due to volatile market conditions. Moreover, shifting focus towards core activities facilitates flexi hiring for non-core activities. India is one of the top Asian countries in flexi hiring, the country will help you cut down your rising human capital expenses. With limited budgets and a decline in the hire of new recruits, many HR officials are resorting to hiring temps to get the work done. The flexible workforce in India is extremely talented, hard-working with innate problem-solving capabilities with the best IT and ITES training institutes across the country. There is also a large database of skilled professionals with expertise in all kinds of programming languages, coding techniques, web and mobile application development Some of the features of an Indian flexi-workforce: • Hiring a flexi staff from India comes with numerous benefits including saving office space, hardware and software investment, infrastructure investment, end-to-end technical support, freedom from employment tax, labour laws and insurance of workers. • Despite the difference in the time zone, they are readily available for work in accordance with the American time zone. • Strong cultural orientation training provided to IT/ITES professionals to serve the client at par with the locally hired professional • Flexi staff recruitment agencies in India provide you with seamless support in getting the best talent to serve your needs at an affordable cost. It also minimizes the employer’s risk as the day-to-day administration and supervision are taken care of by the recruiting agency. Benefits of a flexible workforce • Beat margin pressures – With the cut-throat margins in the IT market, flexi hiring helps you deal with swinging market conditions and beat your competitors’ pricing and quotations. • Potential to turn into a permanent employee – Though a temporary workforce is employed on a short-term contractual basis, but they can always turn into your “tried and tested” permanent employees in the long run by gaining sufficient experience. Thus, saving you a considerable training cost. • Specialist temps – Temps are not only hired for taking care of entry-level jobs, even a specialist temp can be hired for a short-term basis depending upon the need of the project. Many companies hire specialist trainers to train their permanent workforce from time to time. Besides this, specialist temps assist in project planning, database set up and implementation and so on. • Regulate your staff requirement – Staff optimization is another major advantage as you need to hire temps as and when required. Therefore, payroll expenses are minimized and there is no labour redundancy. • Deal with temporary workload intelligently and sustain customer delight – In the IT industry, we find that the workload increases spontaneously when the number of orders increases or when complicated and tougher projects arise. To deliver timely service to all your clients, you can hire temps to meet the deadlines and keep your customers happy. • Reduce time and cost of selection – Flexi hiring eliminates complex and expensive procedures of hiring. It also enables faster mobilization of the workforce and you are liable to pay only for the working days. Thanks to easy communication with real-time data exchange through cloud-based platforms accessible via laptops, tablets and smartphones, there is a major spurt in offshore hiring. Also, continuous overtime and pressure often result in low productivity and poor service quality in the long run thus affecting your human capital. By hiring temps, you will be able to lower the burden on your permanent employees and make use of modern technology.

With the advent of globalization outsourcing has experienced a phenomenal growth. The success story of this concept is so over-powering that it has almost outshone the disadvantages associated with it. This concept may have helped myriads of companies in accumulating wealth but it has also spelled doom for many, and honchos at Boeing can very well vouch for this statement. More often than not, companies get so busy reaping the short term gains that they lose sight of the unpredictable astronomical losses, which is almost like collecting dimes in front of a bulldozer. So, what is wrong with outsourcing? Nothing is wrong with outsourcing. The way some businesses use it is wrong. Initially outsourcing business processes helped companies save a lot of money and it was passed on as a newly found corporate genesis which could substitute the traditional ways at a very less cost. This belief did hold good as long as outsourcing was handled properly, but it was soon discovered that any glitch or unpredicted spikes in the defined process proves fatal for the business. Importance of far-sightedness Far-sightedness is one of the prime prerequisites to chalk out a strategy for outsourcing which, let’s face it, lacks in the new kids on the block. Most of the nascent business units led by young professionals that solely rely on outsourcing suffer an ill fate because of lack of far-sightedness and curtailed experience. A detailed description on the common problems associated with outsourcing can help young entrepreneurs develop a fair idea and induce a sense to use this practice judiciously. • Power shift in the Managerial Control When you enter into a contract with another company and allow them to perform your business processes you involuntarily turn the managerial control to them. This could turn your company into a mere “authority” that the outsourcer is working for, a relationship of this sort differs substantially from a normal in-house work relationship. The company that outsources cannot oversee the functioning of the operations which may lead to loss in quality and other quality related issues. Your extended work force may not imbibe your company’s cultural values and exerting these values may not be even possible. Their only motivation would come from reaping maximum profits from the services provided by them to your company which is not an ideal work relationship. • Uncalled for legal problems When you sign a contract with another party, you are liable to release payment if the conditions of the contract are met. To meet the conditions the other party can stoop down to any levels and even comprehend the conditions of the contract to its benefit. To counterfeit such implicitly deduced inferences a legal aid is usually sought, which adds to the unseen costs. A situation like this invites expenses which are uncalled for and causes unnecessary psychological stress. It has been noticed that, while outsourcing almost all the companies ended up seeking legal help, and spend indeterminable amounts of money. Once both the parties enter into a conflict, it turns into one of those sunny days for legal advisors to make hay. • Quality is compromised When a third party organization takes control of internal business processes of a company, the quality of service rendered can be questionable and is often not up to the mark. Reaping greater profits is the sole motive for most of the organizations and in doing so they tend to cut down on expenses which can directly affect the quality of work delivered by them. This is something that an in-house department of a company would never do, as its own company’s reputation is at stake, but a third party whom you outsource your business process may not think in the same lines. Reviewing the quality of a product is much easier than reviewing the quality of services rendered by the third party to your company’s customers, which leads to confusion and delay in claim settlement. Recently, Dell fell prey to this situation, it had hired a third party to handle its customer grievances cell and the customer complaints increased exponentially over  the call centre executives not being adept in handling the complaints. To substantiate its claim against the third party Dell had to conducts surveys and collect feedback from its customers, this activity itself entailed a significant amount of expenses which were not foreseen. • Surprise hidden costs are extremely unpleasant Incurring hidden costs is never a pleasant experience especially when you are on a budget with no extra money at your disposal. Imagine the look in your face when you buy an expensive home appliance with a promise of free installation and then get charged almost double the standard installation fee because of some paraphernalia used in installation that you thought came along with the appliance. Now, multiply that look a few hundred times when your company is concerned, as the costs involved would be humongous. A contract by far covers almost all the basic costs which are foreseen, but the costs incurred when the business processes are carried out are accounted under hidden costs, which also entails legal fee, if charged any. • Confidentiality and security are at stake A contract usually reserves a company’s right to sue the third party who accepts the outsourced work, if there is a breach of confidentiality, but the damage done cannot be reversed. Highly classified information for a company is what a wedding ring is for girl, if it is stolen, hell hath no fury like a company whose confidential information is leaked. At the end of the day, no matter how much the company tries to bring down the accused for breaching the contract, there is not much that can be done. The leaked information could be used by the company’s arch rivals and if the information is critical it could completely destroy the company. To avoid a situation like this vital information must not be passed on to the third party handling the outsourced work. • Dependence on

Outsourcing may seem like an easy option when you have a lot of work on your hands and very few people in your team, but the itch to outsource work spontaneously must be controlled as it may pose a potential threat to your company. Myriads of benefits of outsourcing have already been established, but little do we know about the demerits and seldom do we bother to know about “when not to outsource”. Should you be worried about something? Notwithstanding the major benefits of this business option there are situations which call for controlling the need to outsource. Acquiring the expertise to identify such situations may take an entire lifetime, but with a comprehensive view on the basics you could develop a knack to identify such situations. Irrespective of the reduced labor costs and increased flexibility outsourcing is not always a viable option and delegating work to an in-house team even at a higher labor cost may deem necessary. Companies who are extremely particular about their cultural standing and their business strategies might not appreciate outsourcing at all, as it involves transferring the job to a third party which may have a different culture and a different management style. The woes of outsourcing are well known by all, but there are companies that still fall prey to common traps. To avoid repeating the common mistakes in outsourcing, it is crucial to acquire in-depth knowledge on outsourcing and carefully study cases where outsourcing proved to be a fiasco, which, let’s face it, no one does and ends up going down the hill. To make things easier for you here is a list of scenarios where outsourcing may seem like a viable option but one should steer clear of it to avoid trouble in the long run. 1. When Outsourcing increases expenditure The prime reason for outsourcing is cost reduction and if that is being compromised then you might want to reconsider your options. This business option is believed to reduce costs as it does not entail overheads like social security and health care of the employees, more often than not the third party also offers a competitive quote which adds to cost reduction. With so many parameters working to its advantage it usually seems like a viable option as compared to delegating work to an in-house team and is bound to reduce costs, but if that is not happening then you might want to consider your options. There may be situations where the cost of outsourcing is much higher than operating an in-house department, which might lead to a financial loss. To avert a financial implication arising from a similar situation you could delegate the work to an in-house team. 2. Outsourcing may not be applicable for every project Just because outsourcing reaped maximum profits in a project does not necessarily mean that it would fare the same way in other projects. Pay close attention to the requirements of the client and the project, there are situations where the client insists on getting the job done from an in-house team rather than a third party. This is clearly because of trust related issues, the client finds it difficult to bank on the quality of the service provided by a third party and prefers to bank upon the company’s reputation. In a fix like this you might want to cater to your client’s requirements rather than outsourcing operations to generate greater profits. 3. Not wise to outsource during management restructuring Any decisions pertaining to outsourcing require undivided attention which is not possible if the top honchos of a company are involved in figuring out their new roles. Restructuring internal operations, eliminating hierarchies and divesting unprofitable functions require a lot of attention and are usually not done over night, after the structuring is completed it takes quite some time for employees to figure out their new roles that come along with new designations. If a company plans to enter into a contract during such unstable times the probability of error and misjudgment increase by leaps and bounds. Any kind of outsourcing needs sufficient focus and ample of time to reap the desired benefits. 4. Outsourcing to a company that frequently changes its senior management may not be a good idea The basic idea behind outsourcing is to transfer the control of business operations of one company to another to the costs and the responsibility associated with it. If the management of the third party goes through constant restructuring, the benefits of outsourcing may not be so pronounced. An unstable management may result in constant reallocation of roles which in turn may cause a lot of confusion in dealing with the employees of the third party. You may end up inviting more trouble in an attempt to brush off responsibility associated with the outsourced business process.  It is essential for the third party to have a stable senior management to facilitate your company in heaving a sigh of relief. 5. Think twice before outsourcing to countries with political unrest The economy of a country heavily depends on the political stability, an unstable economy can adversely affect any company and cause it to topple down from the zenith of success, and this could happen to your third party outsourcing vendor too. Consider the case of Egypt, which was touted as “the next big thing” in 2010 by the industry watchers in the outsourcing domain, came crumbling down when the anti-government protests pushed its government to shut down all the communication services overnight. This caused huge resentment amongst the citizens and agitated them further, almost forcing the nation to be ousted from the list of dream destination for outsourcing. Many cases of outsourcing involve in allocating personnel from your company to the third party’s country and during political unrest you may also jeopardize the lives of your valued employees. Foreseeing political unrest in a country may need a lot of experience and conviction, but it certainly pays off and can save you from incurring grievous loses. 6. Countries with a laid

Most people will have you believed that outsourcing jobs to another country will take away American jobs and lead to economic and social difficulties. Many research studies however point to something contrary. Vinod K. Jain, PhD at the Robert H. Smith School of Business, University of Maryland and Kamlesh Jain, PhD at the India-US World Affairs Institute, D.C. published a study titled ‘How America Benefits from Economic Engagement with India’ in June 2010. The authors noted that a number of Indian companies have been investing steadily even as American companies are accused of offshoring jobs to India. Indeed, outsourcing and offshoring is never a one-way relationship. Instead, the outsourcing destination usually contributes by investing money, manpower and talent in the client nation. Both Republican and Democrat politicians have often used outsourcing as a scapegoat to win the hearts of people and they may certainly believe that they are right too. The idea of purchasing talent, goods and being ‘self sufficient’ is a collectivist tendency that does not go well with an individualistic and entrepreneurial culture like America’s. Here are many reasons why outsourcing is important for America economy: Outsourcing benefits American Economy It is a myth when people say that outsourcing jobs to other countries harms economy. Of course, on the surface it looks like valuable jobs are being exported abroad while unemployment numbers increase back home. Most of the jobs that are outsourced help create higher paying jobs in North America. Economic stagnancy which often results from people doing the same thing all over again can be avoided when jobs that are repetitive and cumbersome are outsourced. Of course, companies spend less on outsourced jobs and end up making more money and pay more taxes. That alone helps to boost American, Canadian or British economies. Outsourcing can improve employment conditions in America Many jobs that are outsourced often require a lot of hard work. This hard work necessarily does not mean high incomes at the end of the month either. Instead, one has to look at jobs as they were, before the advent of IT outsourcing. IT jobs were rare and few and most computer engineers often were not paid as well as they are today. Thus, when these jobs were outsourced abroad, only a small percentage of the jobs were outsourced. Instead, many middle level and senior level jobs were created in order to manage, supervise and train those offshore workers. These jobs ultimately continue to benefit Americans today. If one were to ask the question how these jobs may improve actual working conditions in the U.S., the answers can be varied and diverse. When low paying but demanding jobs are outsourced to low cost countries, corporations have more time and resources in their hands to train their employees. Employees who earlier had to work more number of hours for a lesser salary can often look forward to increased incentives, opportunities to train themselves in new skills an build their career paths in a more opportunistic manner than otherwise. Employees who work in companies that outsource demanding jobs often enjoy more leisure time, avoid hazardous work environments and have better relationships with their managers. American companies gain access to affordable talent Technical education in offshoring destinations is inexpensive. Countries like India, China, Philippines, and Bulgaria tend to veer towards the left and heavily subsidize education. What might cost $100,000 for an undergraduate degree in computer science may cost only a few thousand dollars in these countries. Consequently, there are more technical graduates in Eastern Europe, South Asia and China than in the West. There is also a tendency to favor technical education as opposed to a liberal arts education. This of course results in a group of youngsters who make great employees. Hiring someone who has had graduate education in the U.S. will be significantly more expensive than hiring someone from India or Philippines. This reality is often painted negatively but it not only helps companies that hire these employees, but also onshore employees who can put their liberal arts education to better use. More unemployed people in America can start their own businesses The argument against outsourcing goes like this: jobs that are desperately needed in the U.S. are sent to offshore destinations and that results in unemployment. In reality, there are no conclusive studies that point against outsourcing. Instead, there is a stronger likelihood that highly demanding but low paying jobs are offshored, making room for American unemployed to try newer avenues for creating wealth. That naturally veers towards forming companies and starting own businesses. Entrepreneurial spirit among the unemployed must be encouraged as there is a wealth of talent in offshore destinations that these new entrepreneurs (previously unemployed) can make use of. What may seem like a nemesis can actually prove to be an opportunity to create more wealth and jobs. Outsourcing increases innovation There is nothing more important than being able to create something new and unique. In order to create something new, there has to be room for innovation. When companies, employees and entrepreneurs worry about technical skills, operational tasks and other high-demand issues, they often lose out on innovation. By outsourcing these high demand jobs abroad, entrepreneurs and corporations can invest more time and money into research and development. Innovation helps corporations to increase wealth, employment opportunities and ensure a better ROI in the long run. Controlling capital costs There are other less obvious benefits to outsourcing. A New York Times article pointed out that outsourcing tasks may help in controlling capital costs. This in return attracts more investment and a firm looks more attractive to stakeholders. By controlling capital costs, a company can ensure that significant draining of funds is avoided and available resources are made use of appropriately. The article also points out that outsourcing can increase efficiency within an organization, especially if it is a small or medium sized business. American economy is really fragile at the moment but outsourcing high demand jobs which are low-paying can increase