The concept of outsourcing has been gaining a lot of popularity since the last few decades. Outsourcing basically means asking a third party to work with your company on a contractual basis. It is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff. It is a practice usually undertaken by companies as a cost-cutting measure. In short, it is the process of obtaining goods and services on contract from an outside supplier.
Outsourcing to a business partner saves time and energy, reduces cost and enhances
better risk management.
Tom Peters says, “Do what you do best and outsource the rest”. Through outsourcing, a company can concentrate on domains that it has expertise. 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, reducing turnaround time and eventually generating more profit. India is a favorable place for outsourcing because of efficient work at a much reduced cost. India offers a unique combination of attributes that have established it as the preferred destination for IT-BPO. In a recent survey, 80% of European and US outsourcing firms ranked India as their number one outsourcing destination. Certain favorable government policies, fast-developing infrastructure, and an immensely talented work force are responsible for the Indian IT outsourcing industry continuing to experience a tremendous growth rate of 25–30% per year.
A check list of the benefits of Outsourcing has been summed up below:- Get access to skilled expertise
A corporate company outsources a particular task when it requires skilled expertise. In order to focus on the core mission in providing a high quality product or service, offshoring the task to people who has expertise in the domain makes sense.
By outsourcing a particular task to your outsourcing partner, you share the responsibility with your partner, thereby reducing the burden. Outsourcing helps to reduce the risk involved by getting the job done by in-house staff that may not be not be as competent as the outsourced partner in a particular domain.
Offshore outsourcing to a country like India, which is on a different time zone, gives the added advantage of utilizing the entire day. They can complete critical tasks and send it back for the review the next day.
- Reduction in overall cost
When services like medical billing, call center, digital marketing, etc are outsourced to a low cost country like India, Philippines, etc, you get access to quality services at a much reduced rate. Outsourcing has become quite a popular business practice offering quick and efficient solutions to clients globally.
