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Outsourcing as an idea is not novice; it has been for over a thousand years now, the only difference being that it's gaining lot more popularity since a decade for whatever reasons. Outsourcing basically means asking a third-party vendor to work for you on a contractual basis.
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One of the primary reasons why a business may want to outsource a task is when it requires skilled expertise. To allow you to focus on your core mission in providing a high quality product and service to your customer offshoring the task to people who can perform it better makes sense.
Workload increases with additional non-core functions and the quality of your core activities suffers as your business grows. Outsourcing in such scenario to a third party plays an important role by allowing your key resources to focus on primary business tasks.
Outsourcing will allow you to share any associated risks with your outsourcing partners there by reducing your burden. For example - by outsourcing to a competent outsourcing partner you reduce the risk involved in having the same task done in-house by staff that may not be as competent in that field.
After you allocate tasks to your outsourcing partner, they share the workload of your employees. This allows you to develop your internal task force and use them more efficiently.
Offshore outsourcing to a country like India, which is on a different time zone, gives you the added advantage of making full use of your 24 hour day. Your outsourcing partner can take over and continue your work even after your employees go home. They can complete critical tasks and send it back for your review the next day.
Outsourcing certain independent tasks, allows your business to maintain a financial flexibility when there is an uncertainty in demand. You can scale up or down comfortably. At a much lower cost, offshore outsourcing provides additional benefit of running your business in full throttle even during off season and holiday months.
Your outsourcing partner, with their skilled expertise will produce quality deliverables faster, increasing your turn around time to the customer. With on-time deliveries and high-quality services your customers will be delighted! Outsourcing can help you benefit from increased customer satisfaction and thus creating a stream of loyal customers.
All the benefits listed above come with the bonus benefit of lower cost and big savings! When you outsource services like medical billing, call center and teleradiology, etc. to a low-cost country like India or Philippines , you are getting access to quality services that are offered at a much lower cost (You can save up to 60% costs)! Maintaining an infrastructure can be an extra burden for some businesses, which outsourcing can remove.
The ultimate benefit of outsourcing is that it helps your organization gain a competitive edge in the market. Through strategic outsourcing to an outsourcing partner, you are not only providing your customers with best-of breed services, but increasing your productivity while managing your in-house resources intelligently. Outsourcing can help you surpass competitors who have not yet realized the benefits of outsourcing.
Outsourcing shows an increase in your productivity, customer loyalty. level of quality, business value, profits, and much more.
Companies outsource primarily to cut costs. But today, it is not only about cutting cost but also about reaping the benefits of strategic outsourcing such as accessing skilled expertise, reducing overhead, flexible staffing, and increasing efficiency, reducing turnaround time and eventually generating more profit.
Like any other business venture proper planning and research is necessary before choosing an outsourcing partner whether it is on shore or offshore. But by outsourcing to a third party, your business can focus on what it does best and gain a competitive edge in the marketplace.
Getting work done in-house or externally – what is best for your organization?
Companies must keep in mind the pros & cons of outsourcing before deciding to take the plunge.
A series of articles on the history, benefits and other factors involved in outsourcing.
Outsource2india has dedicated teams to provide wide range of outsourcing services, which help us offer specialized business process outsourcing solutions to clients globally. We leverage on our multi-domain expertise and skills across variegated industry verticals and technologies to achieve superior quality and unmatched proficiency in the outsourced process.