Business outsourcing

Business Outsourcing

A substantially huge Information Technology assignment is bagged by an organization against stiff competition. The organization maintains lean staff in the Information Technology department. The Head of Business concern lands up with a problem of adequate manpower requirement. His alternatives can be

Alternative 1: Hire additional personnel / setup a new department. Result: Huge expenses on classified ads, tests, selection and training, loss of productive time, and heavy overhead charges. At the end of the assignment employees are surplus with no work to allot.

Alternative 2: Approach a temporary service agency, Result: Heavy hourly rates, Low quality output, No guarantee on the skills of the personnel, Overhead charges remaining high.

Alternative 3: Avail services of a professional outsourcing firm. Result: Professional, innovative, quality and customized solutions for the organization, Zero disruption in the normal business, No overhead charges, enormous savings and no headaches.

The analysis will prompt anyone with a smart Business acumen to choose the third option of Business outsourcing. The advantages are enormous and that may be the reason why not the businesses with lean staff but also well staffed and full-fledged business concerns started embracing outsourcing as a cost effective method for completing their projects.

What is Business Outsourcing?

When the ownership of a business process or a project is transferred to an external organization, it is said to be out sourcing. In outsourcing, the client only focuses on the results and quality and the challenge of accomplishing those results and quality rests with the Outsourcing firm. This makes Outsourcing a challenging task for the Outsourcing firm, and a big relief for the client.
Outsourcing has moved from a niche technology management tool to a mainstream strategic weapon. It is fast emerging as a powerful and flexible approach that business leaders can use to achieve a wide range of tactical and strategic aims.

Information Technology Outsourcing – the India Advantage:

Companies from across the globe find India as the most viable option for Information Technology outsourcing because of several reasons.

Large pool of highly skilled and more quality logical Information Technology brains, reasonably priced, highly adaptable and flexible labor Cost-cutting as high as 55 percent English-speaking quality software professionals with craze for Information Technology.

With constant up gradation of technology and unparalleled market research and outsourcing companies’ team is armed with all the modern Information Technology solutions to cater to the needs of customers from any part of the globe.

  • The profit ratio of outsourcing to India is still lucrative but its decreasing as US economy is not growing as Indain economy…but still outsourcing is a profitable venture. 

  • Outsourcing can help an organization to concentrate on its core business, developing a aggressive benefits within its market. By going for an third party provider, a organization has more area to be crucial of the type of solutions offered.