Outsourcing ? Is All About Adding People ? The Outsource Blog

Operating in a tough economic climate as well as a competitive environment, many companies are considering outsourcing their IT infrastructure and services in an effort to save money, streamline operations and keep up with the latest technology. Now, we cannot afford to look at outsourcing in terms of saving costs & addressing a skills shortage. If, instead, we view outsourcing as a partnership with specialists with whom we can collaborate, share or test ideas which will save costs, access skills while we grow the business.

Outsourcing will actually help the company grow and save money if implemented wisely. Some of the benefits of outsourcing are:

Skilled Expertise: Finding skilled resources is one of the biggest challenges faced by companies today, the investment required to train employees and infrastructure required can rapidly drain funds. Outsourcing, frees companies from these hassles by providing access to skilled resources at lower costs, with the additional benefit of not having the burden of managing them directly.

Lower cost: Lower costs are perhaps the prime benefit of offshore outsourcing. You can get work done at a fraction of the cost that you would have to spend locally, while getting better quality as well. Because of the differences in pay and standard of living that exist between Asian and Western countries, labor costs are much lower in Asia. On an average, you can expect about 30% cost savings if you outsource to countries like India.

Increased productivity and Efficiency: Outsourcing not only brings cost advantages but can also improve the efficiency of business operations. If business goals are properly aligned, productivity and efficiency are bound to increase. Outsourcing with the right expertise and experience can actually help streamline business processes and contribute to the bottom-line.

Focus on core activities: Since company employ a third party that focuses on the technical and operations sectors of the business, they can focus more and better manage the core functions that are in-house. Through this, business efficiency is achieved and more profits can be generated.

Time zone difference: Because of the time zone difference between Asian countries and the West, you can get your work done while your business closes down in the evening. This is especially beneficial for companies in the service industry that need to provide round-the-clock customer support.

Risk-sharing: One of the most crucial factors determining the outcome of a campaign is risk-analysis. Outsourcing certain components of your business process helps the organization to shift certain responsibilities to the outsourced vendor.

Source:http://www.itwire.com/press-release/53297-outsourcing-is-all-about-adding-people

Source: http://www.theoutsourceblog.com/2012/03/outsourcing-is-all-about-adding-people/

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