KPO vs BPO

While Northwest Airlines had moved aircraft maintenance to Asia, a Chinese airline was having its fleet of Boeing aircraft serviced in San Francisco. Dr Harris noted that outsourcing was now a political issue in the US, although it has lost its sheen as a main issue. The Democratic presidential candidate, John Kerry, stated the view that American companies that outsourced were traitors. The German Chancellor, Gerhard Schroeder, also voiced similar sentiments but can not check the growing sentiments of outsourcing.

Similarly, a Belgian member of Dr Harris’ audience challenged his view that outsourcing was a necessity if European companies were to remain competitive. He argued that Finnish companies were doing very well, without recourse to outsourcing. Dr Harris pointed out that Nokia was not doing quite as well as before and outsourced few activities to Asia. Dr Harris also referred, that what had contributed to the underlying strength of the USA’s economy: its open door policy as regards professionals in the IT and other sectors.

Any visit to the research laboratories of Texas Instruments in the US, one can note that a high proportion of the names on office doors were Asian, many of them Chinese and Indian. Looking to all above, what can be stated precisely is the fact that there is no need for any country to feel worried about the effects of outsourcing. There are reasons to learn from the companies which have opted from this route and have gained tremendously in terms of saving costs without sacrificing other crucial parameters.

It was obviously China, and India would have to grow at an even faster rate in order to catch up China. Even then, India remains an important outsourcing destination. why American companies had an upper edge over their European counterparts when it came to outsourcing. Admittedly, it was from within the US, that textile mills located in the New England states started shifting production to the southern states to take advantage of their lower wages. At the end of the day KPO is more advantageous than BPO and cost effective as well.