19th September 2008

The Top 5 Advantages of Outsourcing to India

Are your confused about whether your organization should step into outsourcing? The top 5 advantages of outsourcing can help you make a decision on outsourcing.

An increase in productivity
Every organization would have goals to double its productivity as an increase in productivity would translate into an increase in business and profits. Outsourcing to India can give you access to a large number of skilled professionals at a nominal costs. By investing in more human resources, you can get increase your productivity, profitability, efficiency and customer satisfaction.

More time to concentrate on core business functions
Back-office operations are very important for any organization, but your core business functions need more of your attention. By outsourcing to India, you can free yourself from managing your back-office operations and your staff can also start concentrating on your core business processes. India has the latest technology and skilled resources, so you can be rest assured that your back-office operations will be carried out flawlessly.

Access to high-end technology
Organizations worldwide are spending billions of dollars by investing in technology and software. Outsourcing to India can help you give you access to high-end technology and software, saving you the trouble of spending billions of dollars. Technology and software also has to be regularly updated, and this can be very expensive. Outsourcing to India has been proved to be very advantageous in this aspect.

Tax savings
Outsourcing your projects to India can help you save on tax and thereby save on costs.

Skilled resources
India has a large number of professionals who are highly educated and well qualified. Indian professionals are also adept with the latest technology and software. When you choose to outsource to India, you can get access to skilled resources at an affordable cost. Increase the accuracy and quality level of your projects by outsourcing to India.

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9th September 2008

What Can Be Outsourced?

Are you interested in outsourcing but are wondering about what can be outsourced? Do you want to outsource a particular service, but are not sure if it can be outsourced?

The answer to these questions is that almost any type of service can be outsourced as long as data transfer between you and your outsourcing partner is possible.

Need help with deciding which of your organization’s business functions can be outsourced? The following principles can help you decide if a particular function should be outsourced?

  • Business processes that are rule-based are best outsourced
  • If a certain business function requires high efficiency, it can be outsourced
  • Services that require high volume processing are ideal to outsource
  • If a business process requires a large number of resources, then again it is best outsourced
  • Business functions that require improvement are again best outsourced
  • If you want measurable performance from one particular business function, then again it should be outsourced
  • If one of your functions has consistent requirements, you can consider outsourcing it

Countries like India have years of expertise in providing global customers with both IT and ITES services. Outsourcing providers in India have the ability to provide services relating to almost any industry.
I hope there principles have helped you decide which of your business functions can be outsourced.  Did you go by a different set of principles when you were confused about which of your business functions to outsource?  Please share the principles on which you decided to outsource a particular business function.

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25th August 2008

Is online data entry not a part of your core competency?

Do you require online data entry services, but data entry is not a part of your core competency? If your organization is facing a similar situation, why not consider outsourcing your services to a data entry service provider in India.By outsourcing online data entry services, you can benefit from the following:

  • More time to concentrate on core competencies
  • Huge cost savings
  • Efficient services
  • Accuracy
  • Services delivered ahead of your schedules
  • Savings on software, manpower & technology

Outsourcing online data entry services can give your business a competitive edge. Online data entry service providers in India offer a wide range of online data entry services such as the following:

  • Online data entry of bills & receipts
  • Online data entry of labels, subscriptions & mailing lists
  • Online data entry for patient records
  • Online data entry for shipping documents
  • Online data entry of insurance claims forms
  • Online data entry of medical claims forms
  • Online editing, copying, pasting, editing, sorting & indexing
  • Online data entry of legal documents
  • Online data entry from images
  • Online data entry from business cards
  • Online data entry for e-books
  • Online data entry for survey forms, coupon redemptions & credit card applications
  • Online data entry of product catalogs & product registration cards

This list in not comprehensive and service providers in India can provide any online data entry service that you might require. Outsource your online data entry services today.

Contact Us for your Data Entry needs.

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11th August 2008

Common Outsourcing Terms

Do you know the common terms that are used in outsourcing?  Here is a list of some commonly used outsourcing terms.

Outsourcing 

“The practice of having goods or services provided by a person or persons outside the business or organization.”

Offshoring  

“Offshoring describes the relocation of business processes from one country to another. This includes any business process such as production, manufacturing, or services.”

Globalization

“A term used to describe growing interdependence of people around the world with regard to societal influence, economies, and cultural exchanges.”

Insourcing

“The act of bringing together a function that was performed outside the organization (outsourced) to being performed inside the organization.”


Nearshoring

“The act of bringing together a function that was performed outside the organization (outsourced) to being performed inside the organization.”


Job Outsourcing

“This trend of sending jobs to India, China etc has been termed as ‘job outsourcing’”

Global Outsourcing
“Global outsourcing uses a blend of onsite, offshore and nearshore outsourcing solutions to achieve strategic business solutions.”
I hope these definitions on the commonly used outsourcing terms have helped you gain a deeper insight into what outsourcing is all about. If you have anything to share with regards to outsourcing, do leave a comment.

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1st August 2008

How To Manage Your Outsourcing Relationship

Ok, you have already found a reliable outsourcing vendor and have signed the contract, so what the next step? Well, the next step is to continue to maintain an healthy relationship with your offshore partner. Here are a few suggestions that can aid you in nurturing a good relationship with your vendor.

  • Make sure that all the deals are put down in writing, so as to avoid future misunderstandings
  • The outsourcing relationship is similar to the relationship between partners, so approach the relationship as if it were a partnership
  • Ensure that you insist on the things that you need
  • Remembering that the outsourcing relationship is not a master-slave relationship can go a long way in keeping the relationship with your vendor “healthy”
  • During the course of the project make sure that your outsourcing partner understands more about your business
  • Hold regular meetings/discussions with your outsourcer so that you don’t miss out any of the issues/problems that your vendor is facing
  • Assign a couple of employees who would only be in-charge of managing the outsourcing relationship. Make them in-charge to resolve any of the difficulties that your offshore partner might be facing
  • Review problems and discuss performance and expectations on a periodic basis. Holding quarterly reviews can also ensure that your partner is able to understand your requirements

I hope the above steps can ensure that you and your offshore partner have a good outsourcing relationship. If you would like to add to this list or would like to comment on this entry, please feel free to leave a comment.

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24th July 2008

Defining Outsourcing

Have you ever wondered about the definitions of “outsourcing” and “outsource”. If you are new to the concept of outsourcing, you can understand what outsourcing is all about from these definitions.

Definitions of the word “Outsource”

  • To have a service performed or a function completed by others outside of a company
  • Firing local employees to hire cheaper labor elsewhere.
  • Outsourcing is the practice of contracting with an outside company in order to provide a service or product that otherwise might be too expensive, complicated, or time-consuming for the institution to do internally.
  • To contract services from external firms in order to accomplish internal tasks
  • Dismissing in-house employees to hire cheaper labor provided by another organization.
  • The transfer of responsibility to a third party, of activities which formerly were performed internally
  • To obtain goods or services from an outside supplier; to contract work out. Many companies outsource and hire consultants in order to maintain a flexible workforce
  • Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company
  • To transfer the management and/or day-to-day execution of an entire business function to a third party service provider

Definitions of the word “Outsourcing”

  • Assigning responsibility for all or a portion of the activity and tasks involved in developing and/or running and maintaining a system to a vendor
  • A formal agreement with a third party to perform an IS function for an organization
  • The subcontracting of activities (production processes or services) that are not regarded as part of a company’s core business
  • A long-term, results-oriented relationship with an external service provider for activities traditionally performed within the company.
  • Outsourcing usually applies to a complete business process. It implies a degree of managerial control and risk on the part of the provider.
  • Performance outside a firm or plant of a production activity that was previously done inside
  • A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally
  • Companies outsourcing different functions
  • Contracting to a single external operator all non-core activities previously handled internally
  • Making use of the professional computing services of personnel other than A&S or OIT systems administrators
  • A situation in which a firm’s functions are performed or provided by a person or group from outside the company
  • Getting an outside company to do work or some part of work that has previously been performed in-house
  • The process of identifying, acquiring and managing the receipt of Sourced Services from an external Service Provider

I hope these definitions on the terms “Outsource” and “Outsourcing” have helped you to understand what outsourcing is all about. Do you have any definitions on these terms? Do you want share your experiences on outsourcing? Please leave your comments on what you think about outsourcing.

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15th July 2008

How To Start Outsourcing?

You and your organization are interested in outsourcing, but are wondering how to go about the outsourcing process. Here are a few tips that can help you start off on a successful outsourcing relationship.

  1. Select the service/product that you wish to outsource. Choose a service/product that requires more labor, longer cycle times or has a lengthy process. This would be the ideal service or product to outsource as your company will be ale to save on time and effort and also benefit from shorter delivery cycles.
  2. After you select an offshore vendor ask your outsourcing partner to provide you with a free trial. Tell your offshore providers your requirements, the quality standards that you expect and exact way in which you want your work to be carried out. The more details that you share with your partner, the better will be the output. After the trial period you will be able to understand the level of quality of your offshore partner and you can also come to a conclusion if the product/service that you have selected is the right one to outsource.
  3. If you are not happy with the quality of work provided by the outsourcing partner, start searching for another outsourcing vendor who will be better able to meet your requirements. There are plenty of outsourcing vendors to choose from, so if the first outsourcing vendor that you find does not work out, you can always find another outsourcing partner.
  4. On the other hand, if you are satisfied with the work of the outsourcing partner after the trial period, you can continue to work with the selected partner. Discuss with your partner and choose a data transfer process that suits both of you. You can share files through a secure FTP, ask your partner to access your files remotely or even ship documents to your partner’s office.
  5. Discuss about pricing and turnaround time at the onset of the project to avoid confusion and also to make your requirements clear to your outsourcing partner.

By using these simple steps you can successfully start an outsourcing relationship with an offshore vendor. Have you been able to start successfully outsourcing? If not, what are the reasons that are stopping you from choosing to outsource? Please share your valuable thoughts, by leaving a comment.

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9th July 2008

Why outsource?

Have you ever wondered why organizations outsource? Are you wondering whether you must invest in outsourcing? Here are a list of reasons why organizations and individuals choose to outsource a part of there business processes.

  • Increase productivity, commitment and profits in non core business processes
  • Change fixed costs into variable costs
  • Greater control of your budget
  • Access to new markets and business opportunities through your outsourcing partner’s network
  • Improve your risk management
  • Lower costs because of economies of scale
  • More time to spend on core business functions
  • Access to new and innovative ideas about performing your services from your offshore partner
  • Opportunities to generate cash by transferring assets to the offshore provider
  • Improved business image and credibility by associating with superior service providers
  • Increased flexibility and ability to meet changing market conditions
  • Access to services delivered to you within your deadlines
  • Save more by not investing in expensive software, technology and infrastructure
  • Less dependency on in-house employees
  • Improvement in internal management
  • Higher quality of products and services
  • Greater security, confidentiality and business continuity

Do you know of any other reasons why companies choose to outsource? If so, please leave a comment.

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