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Offshore outsourcing is the process in which companies Hire an external organization to carry out their business operations in a country other than the one where the end products are developed or manufactured. Offshore outsourcing can also be used as a means of testing a foreign land where you wish to create another base to expand your operations and enhance your growth.
Cost is one of the main advantages of off shore outsourcing in the long run. However, the initial expenditure needed in infrastructure, recruitment, training, etc is a necessary investment. Advantages like better quality and value are also achieved once the outsourcing has begun. Time resource is also saved along with higher quality and productivity when operations are scattered among a wider work space with better specialization and training.
Growing organizations or organizations trying to reduce their overhead expenses are seeking offshore outsourcing solution in India more than any other country. India’s active Government support and political climate provides a perfect environment for companies to choose India as their best outsourcing destination. Indian outsourcing firms have been successful in delivering smooth and consistent services, reducing risks and providing exceptionally positive results. Even Google couldn’t resist India’s ever growing popularity as a perfect offshore outsourcing destination and the recent establishment of Google R&D centre in Bangalore is a proof of India’s appeal. With a wide variety of available computer literates and English speaking professionals, largest number of graduating students every year, and a vast experience and knowledge in Information Technology, India stands as a strongly preferred country for companies looking for offshore outsourcing solutions. Cost minimization and great work quality are another reasons why companies opt for India.
Few other advantages that firms enjoy when they outsource to India would be the flexibility in working hours due to the difference in time zone and an advanced communication facility with good a connectivity with all other countries in the world.
There is no running away from the fact that Outsourcing too has its share of risks involved. Privacy should be maintained and all precautionary steps should be taken from the very beginning to avoid security breaks. Risk analysis is a very important process. Implications of vendor company’s failure to deliver should be carefully assessed; a company must refrain from outsourcing if high risk is involved, or careful strategic changes in the outsourcing process should be made in order to reduce this risk (for example, shifting from the idea of a single vendor to multiple vendors). Organizations that are exposed to scrutiny or government interference must make sure that the offshore vendor complies to the industry specific prerequisites like compliance with government regulations and sufficient transparency so that it can be easily accountable during audits.