Outsourcing of services by medium- and large-sized companies from US and Europe to low-wage countries like India, Russia, (also known as “offshoring”) has been going on for few years now. This trend is clearly helping the low wage countries to meet the demands of increasing population. The "aging" of developed countries has resulted in a lucrative market for "young" developing countries like India and China. With a large number of skilled workers available for relatively low wages the companies in US and Europe can drastically cut down their production costs. Indian companies like Infosys and Wipro are one of the leading outsourcing companies.
A new trend called person-to-person offshoring is rapidly catching up with these industry based outsourcing techniques. Person-to-Person Offshoring (PPO) consists of those services that can be offshored by entrepreneurs who are trying to bootstrap their new organization as efficiently as possible. With technology advances and the growth of the Internet, small offices, home businesses and even everyday individuals can utilize PPO services.
PPO includes
- online tutoring
- website development
- graphic design
- database, software(games or APIs) development
- writing and translation services
- accounting and tax preparation services
- architectural, home and landscape design services
- marketing and sales support services
- creating drafts of legal documents
- The “individual” client signs a contract directly with a vendor in a low-wage country, whose employees (e.g., tutors, admin) work on a full-time or a part-time basis, or as sub- contractors.The payments are usually made through credit card.
- Indian companies like Satellier,BluentCAD, ASE Designsoft, Exceed International and DimensionICAD ,Xpitax, SurePrep, CCH, IFR, Datamatics, OPI and kpoexperts.com are rapidly making a name for themselves in this category.
- The vendors providing PPO services enroll in an online marketplace by paying a monthly subscription fee plus a fixed percentage of the revenue if they win the project through this marketplace.
- Available marketplaces:
- Guru.com: Guru.com, a Pennsylvania-based company, seems to be the largest marketplace with more than 700,000 registered vendors and freelance professionals. Indians contribute a large chunk of this number.
- Elance.com: Elance.com, a California-based marketplace, is known for its outsourcing
solutions supporting medium to large enterprises with around 125,000 registered vendors. - GetAFreelancer.com
- RentACoder.com: The vendoes registered here accept only coding related projects.