The telecommunications industry, as I said on my previews post, has not much competition compared to other industries but the businesses that are part of it maintain a a level of competitiveness that is unique. Each of those businesses are trying to get all the customers possible. To achieve this they offer the same product and the same quality with a lower price. Many telecommunication companies have being outsourcing and offshoring their businesses in order to obtain lower costs of production and as a result obtain higher profits. Doing this they can also lower their prices and beat the competitor's prices. This strategies have been used for many years now but today it is one of the hottest topics on this industry. A survey made to major telecommunication firms shows that many companies are investing in outsourcing and offshoring and in 2011 sixty percent of the industries' companies are going to be using this strategies.
Outsourcing and offshoring are thought to be a necessity in the telecom industry to remain competitive in the market. This necessity is causing a lot of negative effects too; the economy as a whole is being affected for the amount of local jobs that are being replaced by those cheaper foreign jobs. The competition for these businesses will never end since they will be always seeking for lower production prices and if this continues many more jobs will be local lost for not being cost-effective.
Claudio Lacayo
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