The waves of offshore outsourcing have been hitting the commercial as well as public sector in many countries. Even though it has been relatively prominent in the commercial sector, it has started entering some limited zones in the public sector. The public sector has been in the need for services that will enhance efficiency and enable cost reduction. These perks have already been delivered by the BPO industry. Hence there is more temptation to outsource the public sector jobs to offshore locations.
The offshore outsourcing has already been used extensively in the US commercial sector particularly in Insurance and Financial sector. Kobayashi-Hillary, an advisor on globalization points out that the Australian, Philippines and Canadian government have been sending works to India. Even though the UK government has not directly outsourced the works, many offshore locations deliver parts of wider contracts, he says. It has been seen that the administration and data entry processes of a finance and accounting firm jointly owned by the UK department for health has been outsourced to India.Application development, application management and noncore administrative process like data entry jobs are largely outsourced to India.
In the whole, the offshore market is expanding with the delivery model expanding into new territories to deliver to new geographical locations. With the introduction of cloud computing, where the end result is provided as a service over the internet, offshore outsourcing is no more a concern for many companies. As long as the service is delivered as expected, clients are not concerned about the location from which it comes.