Pest Analysis Of Outsourcing Industry

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Pest Analysis of Outsourcing Industry

Pest Analysis of Outsourcing Industry

Political factors: The government plays a major role in growth of businesses through policy formulations. These policies can affect an organization both positively and negatively. Although policies existing in UK favour exports to UK, sourcing remains the best tool to gain entry into the market. It is further renown for its low cost sourcing. Outsourcing industry should consider the existing government policies and assess whether or not they favour the outsourcing industry.

Economic factors: UK's economy is more advantaged in comparison with most other developing countries. This is primarily due to its ability to deliver high quality products that meet the standards that are required by legislation and consumers in the European countries. It also provides ideal environment to source consumer products. The outsourcing industry is also on the road to recovery due to the policy for revitalization plans for the outsourcing industry which was passed in 2009 just after UK regained economic growth. This has seen the outsourcing industry overcome numerous difficulties and make new development (UK outsourcing network company, 2009: 4). However, UK's market is characterized by risks and outsourcing industry Company should maintain flexibility and diversity when dealing with sourcing. Teaming up with local companies in UK would help Outsourcing industry in cost cutting. It would also aid with the knowledge on the domestic market as they would rather assists as partners rather than competitors (The outsourcing institute 2005).

Social factors: Most of the British working class lack global business experience due to socialism mode of governance where the government provided almost everything especially in the past. Outsourcing industry should aim to build good relationships with both the local and international governments. It should also use sourcing as a means to penetrate the British market. ...
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