The Impact of US Dollar Downfall to Outsourcing

The rapid growth of the  outsourcing industry  in today's world of business is tremendously uncontrollable. In the recent outsourcing news that I've read, various Philippine companies are rushing to find clients in Europe because of the decreasing value of the U.S. dollar in the global market.

Countries that have huge investments and solely rely on outsourcing as a means of income-generating industry are also affected with the downfall of the US dollar. When the US dollar rate decreases, the economy also decreases. There is a tendency that cost-cutting may happen as well as a decrease of profit-margin in the different sectors of Business Process Outsourcing (BPO) companies.

There are lots of critics in the web right now saying that the European market is significantly larger than US, and that the constant growth is extremely fast as well.

There are now lots of new strategies and effective ideas that outsourcing countries like India and Philippines are formulating to further improve the industry and lead the outsourcing competition. On the other hand, the downfall of the US dollar value leads to a more serious competition against the leading outsourcing countries in Asia because of the advantage of language and culture. With US outsourcing projects from Europe, Indians and Filipinos would continue to stand since UK and US almost have the same language and culture.

It is said that a huge percentage of European companies are outsourcing most of their IT requirements and financial services. We are glad that Philippines was voted last year by the UK's outsourcing market as "The Best Offshore Outsourcing Destination" in the world.

If it gets the whole European Market, it could prove to be a great advantage for the Philippine business outsourcing industry. However, the Philippines, must first consider the collapse of US dollar.