OUTSOURCING
OUTSOURCING
>>Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company.[1] The decision to outsource is often made in the interest of lowering cost or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources[citation needed]. Outsourcing became part of the business lexicon during the 1980s. It is essentially a division of labour.Out sourcing in the information technology field has two meanings [2] One is to commission the development of an application to another organization, usually a company that specializes in the development of this type of application. The other is to hire the services of another company to manage all or parts of the services that otherwise would be rendered by an IT unit of the organization. The latter concept might not include development of new applications.
The Advantages of Outsourcing
* Outsourcing your non-core activities will give you more time to concentrate on your core business processes
* Offshoring can give you access to professional, expert and high-quality services
* With outsourcing your organization can experience increased efficiency and productivity in non-core business processes
* Outsourcing can help you streamline your business operations
* Offshore outsourcing can help you save on time, effort, manpower, operating costs and training costs amongst others
* Outsourcing can make your organization more flexible to change
* You can experience an increased control of your business with outsourcing
* Your organization can save on investing in the latest technology, software and infrastructure as your outsourcing partner would be investing in these
* Outsourcing can give you assurance that your business processes are being carried out efficiently, proficiently and within a fast turnaround time
* Offshoring can help your organization save on capital expenditures
* By outsourcing, your company can save on management problems as your offshore partner will be managing the team who does your work
* By outsourcing, you can cater to the new and challenging demands of your customers
* Outsourcing can help your organization to free up its cash flow
* Sharing your business risks is possible with outsourcing
* Outsourcing can give your business a competitive advantage as you will be able to increase productivity in all the areas of your business
* Outsourcing can help your organization to cut is operational costs to more than half
The Disadvantages of Outsourcing
* At times, it is more cost-effective to conduct a particular business process, rather than outsourcing it
* While outsourcing services such as payroll processing services and tax preparation services, your outsourcing provider will be able to see your company’s confidential information and hence there is a threat to security and confidentiality in outsourcing
* When you begin to outsource your business processes, you might find it difficult to manage the offshore provider when compared to managing processes within your organization
* Offshoring can create potential redundancies for your organization
* In case, your offshore service provider becomes bankrupt or goes out of business, your organization will have to immediately move your business processes in-house or find another outsourcing provider
* The employees in your organization might not like the idea of you outsourcing your processes and they might express lack of interest or lack of quality at work
* Your outsourcing provider might not be only providing services for your organization. Since your provider might be catering to the needs of several companies, there might be not be complete devotion to you and your company
* By outsourcing, you might forget to cater to the needs of your valuable customers as your focus will be on the business process that is outsourced
* In outsourcing, you may lose your control over the process that is outsourced
* Outsourcing, though cost-effective, might have hidden costs, such as the legal costs incurred while signing a contract between companies. You might also have to spend a lot of time and effort in getting the contract signed
* With outsourcing, your organization might suffer from a lack of customer focus
* There can be several disadvantages in outsourcing, such as, renewing contracts, misunderstanding of the contract, lack of communication, poor quality and delayed services amongst others.
Benefits of outsourcing
1. Take advantage of the cost-advantages!
Outsourcing to countries such as India can give you access to cost-effective services. The same services with the same level of quality are offered in India for a much lower cost! This cost-advantage has increased the number of services that are being offered to India. Services such as call center services, teleradiology, medical billing, etc can help you save up to 60% of your total costs when outsourced! Getting access to high-quality services at a cost-effective price is the biggest benefit that you can get while outsourcing. Outsource and reap the benefits of outsourcing.
2. See an increase in your business
Another benefit of outsourcing is seeing a big increase in your profits, productivity, level of quality, business value, business performance and much more. Outsourcing can help you see an increase in almost every aspect of your business. Outsource and see your organization experience an increase in every aspect with these benefits of outsourcing.
3. Save Big!
One of the benefits of outsourcing is that you can save on every aspect of your business and increase your profits. When you outsource, you can save on time, effort, infrastructure and manpower. Since you don't have to invest in infrastructure, you can also save on making unnecessary fixed investments. Outsourcing removes the burden of changing or maintaining infrastructure. You can also save on capital expenditure. Outsourcing can also help you save on training costs, because you do not have to invest in manpower. These savings will help bring about an increase in your revenue. Your organization can also save on investing in expensive software and technologies.
4. Get access to specialized services
By outsourcing you can get expert and skilled services. This benefit of outsourcing has been the key reason why several outsourcers opt for outsourcing. The function that you outsource may not be your core competency but you can find an outsourcing partner who is specialized in that particular business process. Your outsourcing partner will be able to provide more proficient services. This is yet another benefit of outsourcing, because if you perform all your business processes in-house, you will not be able to provide specialized and skilled services. Outsourcing can give you this advantage.
Outsource2india is an organization that offers a wide range of specialized business process outsourcing solutions to global clients. Outsourcing business processes to us has enabled clients to cross-leverage our skills and expertise across industry verticals and technologies to achieve greater efficiency and quality levels in the outsourced process.
At Outsource2india, we have dedicated teams that offer outsourced services across a range of services which include Call center, Data Entry Servicesand Engineering Services, Healthcare Services, Financial Services, Software Development, Research and Analysis Services, Photo Editing Services, Creative Services and Web-analytics Services.
Outsource specific processes to our expert teams and increase your ROI. Contact O2I here.
5. Concentrate more on your core business
One of the benefits of outsourcing is that your organization will be free to concentrate on your core business. By outsourcing all your non-core functions, your employees can be put to better use and you will be able to see a huge growth in your core business.
6. Make faster deliveries to customers
Another benefit of outsourcing is that you can make quicker deliveries to customers. Your outsourcing partner will be able to provide faster deliverables and you in turn will be able to make quick deliveries to your customer. Faster deliveries can also help you save on time.
7. Improved customer satisfaction
With timely deliveries and high-quality services you can impress your customers. Outsourcing can help you benefit from increased customer satisfaction and your customers will remain loyal to your organization.
8. Benefit from time zone advantages
Outsourcing to countries such as India has a time zone advantage. Your night will be India's day. With this advantage, your outsourcing partner can complete critical work and send it to you the next day. Thus, your work is continued by your outsourcing partner even after your employees go home. This enables the work to be completed much faster and gives your business a competitive advantage. This is one of the benefits of offshore outsourcing.
9. Increased efficiency
Another benefit of outsourcing is increased efficiency. Your non-core business functions will be performed efficiently by your outsourcing partner, while your core functions can be efficiently carried out in-house. Thereby you can achieve overall efficiency and see an increase in your profits.
10. Give your business a competitive edge!
Outsourcing can help your organization gain a competitive edge in the market. You can also get access to specialized services for different business processes and thereby provide your customers with best-of breed services. Such strategic outsourcing can give your business a competitive edge among your peers. The benefits of outsourcing can give your organization a cutting-edge in the worldwide market. Outsource and take advantage of the benefits of outsourcing.
11. Outsourcing countries also benefit from outsourcing
Countries such as U.S, U.K, Norway and Australia amongst others can benefit by outsourcing. The economy of these countries has increased tremendously after outsourcing. In the U.S, after the outsourcing boom, the economy has increased, jobs have increased and the wages of American workers have increased.
>>if i would take a position, i would suggest outsourcing.
because it is less hassle since it is contractual,
the organization will still focus on its operation.
with this you can cater the needs of your clients.
and also organizations can save on time, effort,
manpower and would also aid organizations in making quicker deliveries to clients.
>> another is that if there are services that do not fall under teh core competency of the organization
then, outsourcing is a goo option. because you will be able to access the service.
>>Most organizations are opting to outsource because outsourcing enables organizations to access intellectual capital,
focus on core competencies, shorten the delivery cycle time and reduce costs significantly.
Organizations feel outsourcing is an effective business strategy to help improve their business.
reference:
http://www.outsource2india.com/why_outsource/articles/benefit_outsourcing.asp
http://www.outsource2india.com/why_outsource/articles/advantages-disadvantages-outsourcing.asp
http://en.wikipedia.org/wiki/Outsourcing
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