Outsourcing

Outsourcing or sub-servicing often refers to the process of contracting to a third-party. [1] While
outsourcing may be viewed as a component to the growing division of labor encompassing all
societies, the term did not enter the English-speaking lexicon until the 1980s. Since the 1980s,
transnational corporations have increased subcontracting across national boundaries. In the
United States, outsourcing is a popular political issue.
A precise definition of outsourcing has yet to be agreed upon. Thus, the term is used
inconsistently. However, outsourcing is often viewed as involving the contracting out of a
business function - commonly one previously performed in-house - to an external provider.[2] In
this sense, two organizations may enter a contractual agreement involving an exchange of
services and payments. Of recent concern is the ability of businesses to outsource to suppliers
outside the nation, sometimes referred to as offshoring or offshore outsourcing (which are odd
terms because doing business with another country does not mean you have to go offshore[3][4][5][6]
[7]
) In addition, several related terms have emerged to grasp various aspects of the complex
relationship between economic organizations or networks, such as nearshoring, multisourcing[8][9]
and strategic outsourcing.[10] Almost any conceivable business practice can be outsourced for any
number of stated reasons. The implications of outsourcing objectively and subjectively vary
across time and space.
[edit] Reasons
Organizations that outsource are seeking to realize benefits or address the following issues:[11][12]
[13][14]

• Cost savings — The lowering of the overall cost of the service to the business. This will
involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-
structuring. Access to lower cost economies through offshoring called "labor arbitrage"
generated by the wage gap between industrialized and developing nations.[15]
• Focus on Core Business — Resources (for example investment, people, infrastructure)
are focused on developing the core business. For example often organizations outsource
their IT support to specialised IT services companies.
• Cost restructuring — Operating leverage is a measure that compares fixed costs to
variable costs. Outsourcing changes the balance of this ratio by offering a move from
fixed to variable cost and also by making variable costs more predictable.
• Improve quality — Achieve a steep change in quality through contracting out the service
with a new service level agreement.
• Knowledge — Access to intellectual property and wider experience and knowledge.[16]
• Contract — Services will be provided to a legally binding contract with financial
penalties and legal redress. This is not the case with internal services.[17]
• Operational expertise — Access to operational best practice that would be too difficult or
time consuming to develop in-house.
• Access to talent — Access to a larger talent pool and a sustainable source of skills, in
particular in science and engineering.[3][18]
 • Capacity management — An improved method of capacity management of services and
technology where the risk in providing the excess capacity is borne by the supplier.
• Catalyst for change — An organization can use an outsourcing agreement as a catalyst
for major step change that can not be achieved alone. The outsourcer becomes a Change
agent in the process.
• Enhance capacity for innovation — Companies increasingly use external knowledge
service providers to supplement limited in-house capacity for product innovation.[19][20]
• Reduce time to market — The acceleration of the development or production of a product
through the additional capability brought by the supplier.[21]
• Commodification — The trend of standardizing business processes, IT Services, and
application services which enable to buy at the right price, allows businesses access to
services which were only available to large corporations.
• Risk management — An approach to risk management for some types of risks is to
partner with an outsourcer who is better able to provide the mitigation.[22]
• Venture Capital — Some countries match government funds venture capital with private
venture capital for start-ups that start businesses in their country.[23]
• Tax Benefit — Countries offer tax incentives to move manufacturing operations to
counter high corporate taxes within another country.
• Scalability — The outsourced company will usually be prepared to manage a temporary
or permanent increase or decrease in production.
• Creating leisure time — Individuals may wish to outsource their work in order to
optimise their work-leisure balance.[24]
[edit] Specific examples of corporate outsourcing
There are situations when a firm may consider outsourcing some of its R&D work to a contract
research organizations or universities. In this context, the two most populous countries in the
world, China and India, provide huge pools from which to find talent. Both countries produce
over 200,000 engineers and science graduates each year. Moreover both countries are low cost
sourcing countries.
Outsourcing in the information technology field has two meanings.[25] One is to commission the
development of an application to another organization, usually a company that specializes in the
development of this type of application. The other is to hire the services of another company to
manage all or parts of the services that otherwise would be rendered by an IT unit of the
organization. The latter concept might not include development of new applications.
[edit] Implications
[edit] Management, the corporation and consumers
[edit] Quality risk
Quality risk is the propensity for a product or service to be defective, due to operations-related
issues. Quality risk in outsourcing is driven by a list of factors. One such factor is opportunism
by suppliers due to misaligned incentives between buyer and supplier, information asymmetry,
high asset specificity, or high supplier switching costs. Other factors contributing to quality risk
in outsourcing are poor buyer-supplier communication, lack of supplier
capabilities/resources/capacity, or buyer-supplier contract enforceability. Two main concepts
must be considered when considering observability as it related to quality risks in outsourcing:
the concepts of testability and criticality.
Quality fade is the deliberate and secretive reduction in the quality of labor in order to widen
profit margins. The downward changes in human capital are subtle but progressive, and usually
unnoticeable by the out sourcer/customer. The initial interview meets requirements, however,
with subsequent support, more and more of the support team are replaced with novice or less
experienced workers. Some IT shops[who?] will continue to reduce the quality of human capital,
under the pressure of drying up labor supply and upward trend of salary, pushing the quality
limits. Such practices are hard to detect, as customers may just simply give up seeking help from
the help desk. However, the overall customer satisfaction will be reduced greatly over time[citation
needed]
. Unless the company constantly conducts customer satisfaction surveys, they may
eventually be caught in a surprise of customer churn, and when they find out the root cause, it
could be too late. In such cases, it can be hard to dispute the legal contract with the outsourcing
company, as their staff are now trained in the process and the original staff made redundant. In
the end, the company that outsources may find that it is worse off than before it outsourced its
workforce.
[edit] Quality of service
Quality of service is measured through a service level agreement (SLA) in the outsourcing
contract. In poorly defined contracts there is no measure of quality or SLA defined. Even when
an SLA exists it may not be to the same level as previously enjoyed. This may be due to the
process of implementing proper objective measurement and reporting which is being done for
the first time. It may also be lower quality through design to match the lower price.
There are a number of stakeholders who are affected and there is no single view of quality. The
CEO may view the lower quality acceptable to meet the business needs at the right price. The
retained management team may view quality as slipping compared to what they previously
achieved. The end consumer of the service may also receive a change in service that is within
agreed SLAs but is still perceived as inadequate. The supplier may view quality in purely
meeting the defined SLAs regardless of perception or ability to do better.
Quality in terms of end-user-experience is best measured through customer satisfaction
questionnaires which are professionally designed to capture an unbiased view of quality. Surveys
can be one of research.[26] This allows quality to be tracked over time and also for corrective
action to be identified and taken.
[edit] Productivity
Offshore outsourcing for the purpose of saving cost can often have a negative influence on the
real productivity of a company. Rather than investing in technology to improve productivity,
companies gain non-real productivity by hiring fewer people locally and outsourcing work to
less productive facilities offshore that appear to be more productive simply because the workers
are paid less. Sometimes, this can lead to strange contradictions where workers in a developing
country using hand tools can appear to be more productive than a U.S. worker using advanced
computer controlled machine tools, simply because their salary appears to be less in terms of
U.S. dollars.
In contrast, increases in real productivity are the result of more productive tools or methods of
operating that make it possible for a worker to do more work. Non-real productivity gains are the
result of shifting work to lower paid workers, often without regards to real productivity. The net
result of choosing non-real over real productivity gain is that the company falls behind and
obsoletes itself overtime rather than making investments in real productivity.
[edit] Staff turnover
The staff turnover of employee who originally transferred to the outsourcer is a concern for
many companies. Turnover is higher under an outsourcer and key company skills may be lost
with retention outside of the control of the company. In outsourcing offshore there is an issue of
staff turnover in the outsourcer companies call centers. It is quite normal for such companies to
replace its entire workforce each year in a call center.[27] This inhibits the build-up of employee
knowledge and keeps quality at a low level.[citation needed]
[edit] Language skills
In the area of call centers end-user-experience is deemed to be of lower quality when a service is
outsourced. This is exacerbated when outsourcing is combined with off-shoring to regions where
the first language and culture are different.[28] The questionable quality is particularly evident
when call centers that service the public are outsourced and offshored.[citation needed]
The public generally find linguistic features such as accents, word use and phraseology different
which may make call center agents difficult to understand. The visual clues that are present in
face-to-face encounters are missing from the call center interactions and this also may lead to
misunderstandings and difficulties.[29] In addition to language and accent differences, a lack of
local social and geographic knowledge is often present, leading to misunderstandings or mis-
communications.[citation needed]
[edit] Failure to deliver business transformation
Business transformation promised by outsourcing suppliers often fails to materialize. In a
commoditised market where many service providers can offer savings of time and money, smart
vendors have promised a second wave of benefits that will improve the client’s business
outcomes. According to Vinay Couto of Booz & Company “Clients always use the service
provider’s ability to achieve transformation as a key selection criterion. It’s always in the top
three and sometimes number one.” While failure is sometimes attributed to vendors overstating
their capabilities, Couto points out that clients are sometimes unwilling to invest in
transformation once an outsourcing contract is in place.[30][unreliable source?]
[edit] Security
Before outsourcing an organization is responsible for the actions of all their staff and liable for
their actions. When these same people are transferred to an outsourcer they may not change desk
but their legal status has changed. They no-longer are directly employed or responsible to the
organization. This causes legal, security and compliance issues that need to be addressed through
the contract between the client and the suppliers. This is one of the most complex areas of
outsourcing and requires a specialist third party adviser.
Fraud is a specific security issue that is criminal activity whether it is by employees or the
supplier staff. However, it can be disputed that the fraud is more likely when outsourcers are
involved, for example credit card theft when there is scope for fraud by credit card cloning. In
April 2005, a high-profile case involving the theft of $350,000 from four Citibank customers
occurred when call center workers acquired the passwords to customer accounts and transferred
the money to their own accounts opened under fictitious names. Citibank did not find out about
the problem until the American customers noticed discrepancies with their accounts and notified
the bank.[31]
[edit] Qualifications of outsourcers
The outsourcer may replace staff with less qualified people or with people with different non-
equivalent qualifications.[32]
In the engineering discipline there has been a debate about the number of engineers being
produced by the major economies of the United States, India and China. The argument centers
around the definition of an engineering graduate and also disputed numbers. The closest
comparable numbers of annual graduates of four-year degrees are United States (137,437) India
(112,000) and China (351,537).[33][34]
[edit] Company knowledge
Outsourcing could lead to communication problems with transferred employees. For example,
before a transfer the staff has access to broadcast company e-mail that informs them of new
products, procedures etc. An outsourcing organization may not have the same e-mail access
available to them. To reduce costs, outsourced employees may have new information delivered
to them in team meetings.
[edit] Public opinion
There is a strong public opinion in the United States against outsourcing (especially when
combined with offshoring) because it leads to job displacement.[citation needed] It is difficult to dispute
that outsourcing has a detrimental effect on individuals who face job disruption and employment
insecurity.[citation needed] However, outsourcing supporters[who?] draw on mainstream economics to
argue that outsourcing should bring down prices, providing greater economic benefit to all.
There are legal protections in the European Union regulations called the Transfer of
Undertakings (Protection of Employment). Labor laws in the United States are not as protective
as those in the European Union.[35] On June 26, 2009, Jeff Immelt, the CEO of General Electric,
called for the United States to increase its manufacturing base employment to 20% of the
workforce commenting that the U.S. has outsourced too much and can no longer rely on
consumer spending to drive demand.[36]
[edit] Standpoint of labor
From the standpoint of labor outsourcing may represent a new threat, contributing to rampant
worker insecurity, and reflective of the general process of globalization.[37] While the
"outsourcing" process may provide benefits in some form and to some degree it may undermine
the ability of labor to resist unwanted changes in the workplace. For example, a corporation may
outsource a division of the company to a service provider, that may retain the workforce on
worse conditions or discharge them in the short term.
[edit] By country
[edit] United States
'Outsourcing' became a popular political issue in the United States during the 2004 U.S.
presidential election. The political debate centered on outsourcing's consequences for the
domestic U.S. workforce. Democratic U.S. presidential candidate John Kerry criticized U.S.
firms that outsource jobs abroad or that incorporate overseas in tax havens to avoid paying their
"fair share" of U.S. taxes during his 2004 campaign, calling such firms "Benedict Arnold
corporations".
Criticism of outsourcing, from the perspective of U.S. citizens, by-and-large, revolves around the
costs associated with transferring control of the labor process to an external entity in another
country. A Zogby International poll conducted in August 2004 found that 71% of American
voters believed that “outsourcing jobs overseas” hurt the economy while another 62% believed
that the U.S. government should impose some legislative action against companies that transfer
domestic jobs overseas, possibly in the form of increased taxes on companies that outsource.[38]
One given rationale is the extremely high corporate income tax rate in the U.S. relative to other
OECD nations,[39][40][41] and the practice of taxing revenues earned outside of U.S. jurisdiction, a
very uncommon practice. However, outsourcing is not solely a U.S. phenomenon as corporations
in various nations with low tax rates outsource as well, which means that high taxation can only
partially, if at all, explain US outsourcing. For example, the amount of corporate outsourcing in
1950 would be considerably lower than today, yet the tax rate was actually higher in 1950.[42]
It is argued that lowering the corporate income tax and ending the double-taxation of foreign-
derived revenue (taxed once in the nation where the revenue was raised, and once from the U.S.)
will alleviate corporate outsourcing and make the U.S. more attractive to foreign companies.
However, while the US has a high official tax rate, the actual taxes paid by US corporations may
be considerably lower due to the use of tax loopholes, tax havens, and attempts to "game the
system".[43] Rather than avoiding taxes, outsourcing may be mostly driven by the desire to lower
labor costs (see standpoint of labor above). Sarbanes-Oxley has also been cited as a factor for
corporate flight from U.S. jurisdiction.
[edit] See also
• Business process outsourcing
• Call center industry in the Philippines
• Co-sourcing
• Comparative advantage
• Compromise agreement
• Crowdsourcing
• Engineering process outsourcing (EPO)
• Farmshoring
• Freelance marketplace
• Globality
• Homeshoring
• Insourcing
• Knowledge process outsourcing (KPO)
• Legal process outsourcing (LPO)
• List of management topics
• Nearshoring
• Offshore outsourcing
• Offshore software development
• Offshoring IT Services
• Offshoring Research Network
 • Online outsourcing
• Print and Mail Outsourcing
• Programmers Guild
• Recruitment Process Outsourcing (RPO)
• Socially responsible outsourcing
• Supply chain
• Telecentre
• Telecommuting
• Vertical integration
[edit] References
1. ^ "Terms and Definitions". ventureoutsource.com.
http://www.ventureoutsource.com/node/18/print. Retrieved 2007-10-05.
2. ^ Overby, S (2007) ABC: An Introduction to Outsourcing. CIO.com.
3. ^ a b Manning et al. (2008) A Dynamic Perspective on Next-Generation Offshoring: The
Global Sourcing of Science and Engineering Talent Academy of Management
Perspectives 22.3: 35-54.
4. ^ Norwood et al. (2006) Off-Shoring: An Elusive Phenomenon. National Academy of
Public Administration
5. ^ Babu, M. (2005) Myth: All Outsourcing Is Offshoring www.computerworld.com
6. ^ McCue, A. (2006) Indian outsourcers to launch European invasion www.silicon.com.
7. ^ Gibson (2006) India 2.0 Aims to Sustain Its Global IT Influence eWeek
8. ^ (Q4 2006)Mandatory Multisourcing Discipline Business Trends Quarterly
9. ^ (2006) Mandatory Multisourcing Discipline
10. ^ see Holcomb & Hitt, 2007
11. ^ Gareiss, R (2002, 18 Nov) Analyzing The Outsourcers. Information Week.
12. ^ Drezner, D.W. (2004) The Outsourcing Bogeyman www.foreignaffairs.org
13. ^ Engardio, P. (2006) Outsourcing: Job Killer or Innovation Boost? Business Week
14. ^ "Is it Virtuous to be Virtual? The VC Viewpoint", Justin Chakma, Jeff L Calcagno, Ali
Behbahani and Shawn Mojtahedian, Nature Biotechnology Volume 27, Number 10,
October 2009.
15. ^ Engardio, P. & Arndt, M. & Foust, D. (2006) The Future Of Outsourcing Business
Week
16. ^ Engardio, P. & Kripalani, M. (2006) The Rise Of India Business Week
17. ^ Rothman, J. (2003) 11 Steps to Successful Outsourcing: A Contrarian's View
www.computerworld.com
18. ^ Lewin, A.Y. & Couto, V. Next Generation Offshoring: The Globalization of Innovation
Offshoring Research Network 2006 Survey Report
19. ^ Lewin, A.Y. & Couto, V. Next Generation Offshoring: The Globalization of
InnovationOffshoring Research Network 2006 Survey Report
20. ^ Couto et al. Offshoring 2.0: Contracting Knowledge and Innovation to Expand Global
Capabilities Offshoring Research Network 2007 Service Provider Report
21. ^ Nadeem, S (2009) “The Uses and Abuses of Time: Globalization and Time Arbitrage
in India’s Outsourcing Industries”. Global Networks
22. ^ Roehrig, P (2006) Bet On Governance To Manage Outsourcing Risk. Business Trends
Quarterly
23. ^ "Russia finally gets serious about venture capital". VentureBeat. 2007-06-01.
http://venturebeat.com/2007/06/01/russia-finally-gets-serious-about-venture-capital/.
Retrieved 2010-03-15.
24. ^ Gamerman, Ellen (2007-06-02). "Outsourcing Your Life". Wall Street Journal.
http://online.wsj.com/article/SB118073815238422013.html. Retrieved 2010-07-23.
25. ^ Management Information Systems 5e, Oz - ©2006 Course Technology
26. ^ Maddock, B. & Warren, C. & Worsley A. (2005) Survey of canteens and food services
in Victorian schools
27. ^ Kobayashi-Hillary, M. (2007) India faces battle for outsourcing news.bbc.co.uk
28. ^ Nadeem, S (2009) Macaulay’s (Cyber) Children: The Cultural Politics of Outsourcing
in India. Cultural Sociology
29. ^ Alster, N (2005) Customer Disservice. www.CFO.com.
30. ^ Bray, P (2009) Mutual aspiration. www.outsourcingandoffshoring.com
31. ^ Ribeiro, J (2005) Indian call center workers charged with Citibank fraud.
www.infoworld.com
32. ^ Stein, R (2005) Hospital Services Performed Overseas. www.washingtonpost.com
33. ^ Wadhwa, V (2005) About That Engineering Gap. www.businessweek.com
34. ^ Gereffi, G. & Wadhwa, V. Framing the Engineering Outsourcing Debate: Placing the
United States on a Level Playing Field with China and India. Duke University.
35. ^ Ganesh, S. (2007). Outsourcing as Symptomatic. Class visibility and ethnic
scapegoating in the US IT sector.. Journal of Communication Management, 11.1: 71-83.
36. ^ Bailey, David and Soyoung Kim (June 26, 2009).GE's Immelt says U.S. economy
needs industrial renewal.UK Guardian.. Retrieved on June 28, 2009.
37. ^ Krugman, Paul (2006). "Feeling No Pain." New York Times, March 6, 2006
38. ^ Zogby International survey results online at zogby.com
39. ^ "Veronique de Rugy on Corporate Flight & Taxes on NRO Financial".
Nationalreview.com. 2002-04-18.
http://www.nationalreview.com/nrof_comment/comment-rugy041802.asp. Retrieved
2010-03-15.
40. ^ "U.S. Lagging Behind OECD Corporate Tax Trends". The Tax Foundation. 2006-05-
05. http://www.taxfoundation.org/news/show/1466.html. Retrieved 2010-03-15.
 41. ^ John Tamny. "John Tamny on Hillary Clinton Economics on NRO Financial".
Article.nationalreview.com. http://article.nationalreview.com/?
q=ODZjNjI4ZTNjZmNiOGMxYjAwOTg1ZGI0NmFiOWFjZjI=. Retrieved 2010-03-
15.
42. ^ "Microsoft Word - 10-16-03tax-rev.doc" (PDF). http://www.cbpp.org/files/10-16-
03tax.pdf. Retrieved 2010-03-15.
43. ^ "High Corporate Tax Rate Is Misleading at". Smartmoney.com.
http://www.smartmoney.com/investing/economy/high-corporate-tax-rate-is-misleading-
22463/. Retrieved 2010-03-15.
[edit] External links
Look up outsourcing in Wiktionary, the free dictionary.

• Extreme Outsourcing - Forbes.com

• Free Trade Bulletin no. 10. Why We Have Nothing to Fear from Foreign Outsourcing
• Identifying, understanding and resolving legal and operational issues in outsourcing
• LPOs Add More Punch to India Action - The Economic Times
• New York Firm Takes On India... "Very Nice!" - Lexpert Magazine
• Now, for some LPO action - The Hindu
• Towers Perrin HR Outsourcing Effectiveness Survey Report 2008
• U.S. corporates outsource legal work to India - The Hindu Business Line
[edit] Videos
• Trade and the Future of American Workers
• Outsource workers being trained
• Difference between Outsourcing and Worldsourcing
[hide]
v•d•e
International trade

Balance of payments · Balance of trade · Current account · Capital account ·

Foreign exchange reserves · Net Capital Outflow · Comparative advantage ·
Definitions
Absolute advantage · Export-oriented industrialization · Import substitution
industrialization

World Trade Organization · International Monetary Fund · World Bank Group ·

Organizations
International Trade Centre · UNCTAD · Trade bloc — Free trade zone · Trade
and policies
barrier · Trade pact · Economic integration

Schools of
Free trade · Balanced trade · Mercantilism · Protectionism
thought
Related
Globalization · Outsourcing · Trade justice · Fair trade
issues

Customs ASEAN · CACM · ACU · CAN · CARICOM · CEMAC · EAC · EAEC ·

unions CUBKR · EU · GCC · Mercosur · SACU · WAEMU
Retrieved from "http://en.wikipedia.org/wiki/Outsourcing"
Categories: Business terms | International economics | Management | Offshoring | Outsourcing |
Telecommuting
Hidden categories: Articles lacking reliable references from October 2009 | NPOV disputes from
May 2010 | Articles with limited geographic scope | All articles with specifically-marked weasel-
worded phrases | Articles with specifically-marked weasel-worded phrases from March 2010 |
All articles with unsourced statements | Articles with unsourced statements from April 2009 |
Articles with unsourced statements from January 2010 | Articles with unsourced statements from
December 2008 | Articles with unsourced statements from August 2009 | All articles lacking
reliable references | Articles lacking reliable references from July 2009 | Articles with unsourced
statements from March 2010
Personal tools
• New features
• Log in / create account
Namespaces
• Article
• Discussion
Variants
Views
• Read
• Edit
• View history
Actions
Search
Top of Form
Special:Search

Bottom of Form
Navigation
• Main page
• Contents
• Featured content
• Current events
• Random article
 • Donate
Interaction
• About Wikipedia
• Community portal
• Recent changes
• Contact Wikipedia
• Help
Toolbox
• What links here
• Related changes
• Upload file
• Special pages
• Permanent link
• Cite this page
Print/export
• Create a book
• Download as PDF
• Printable version
Languages
• Беларуская (тарашкевіца)
• Brezhoneg
• Български
• Česky
• Dansk
• Deutsch
• Español
• Esperanto
• ‫فارسی‬
• Français
• 한국어
• Bahasa Indonesia
• Íslenska
• Italiano
• ‫עברית‬
• Lietuvių
• मराठी
• Монгол
• Nederlands
• 日本語
• Norsk (bokmål)
• Polski
• Português
• Română
• Русский
• Slovenčina
• Suomi
• Svenska
• தமிழ்
• Türkçe
• Українська
• Tiếng Việt
• 中文
• This page was last modified on 5 October 2010 at 20:47.
• Text is available under the Creative Commons Attribution-ShareAlike License;
additional terms may apply. See Terms of Use for details.
Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
organization.
• Contact us
• Privacy policy
• About Wikipedia
• Disclaimers

What is information outsoursing?

outsourcing is when you pay another company to take on an aspect of your business, e.g
accountant. so i should think information outsourcing is giving information to a company to
keep safe or to sell.

• Related ads:
• Research your answer:
• Top of Form
 • Search
• Bottom of Form
•
Top of Form

10 Search

Outsourcing Search: Advanced Search

Popular Searches:
Outsourcing, BPO, Call Center Outsourcing, India Outsourcing,
Offshore Software Development, Web Design Company
Bottom of Form

Accounting Advertising & Animation

Accountants, Bookkeeping & Marketing 2D & 3D, Character Design, Flash,
Taxes, Collections, Payroll ... Print, Radio, TV, Internet, Illustration, Post Production...
PR, Sales ...

Business Process Call Center Education & Training

Back Office, Biotech & Pharma, Customer Care, Consulting, Technical Training, E-Learning,
Outbound, Training ... Certification ...
Financial, Healthcare ...

Engineering Facilities Mgmt Graphic Design &

CAD, Drafting & Illustration, Maintenance & Repairs, Multimedia
Product Design ... Property Mgmt, Security ... Audio, Brochures, Games,
Logos, Websites, Video ...

Human Resources IT Legal

Background Check, Benefits Software Development, Intellectual Property, Research,
Admin, Hiring & Web Design, Web Hosting ...Support, Transcription ...
Recruitment ...

Manufacturing Printing & Publishing Telecommunications

OEM, Quality Inspection, Printing, Photocopying, Cost Mgmt, Conferencing,
Product Testing ... Publishing ... Data, Voice, Wireless...

Translation Services Transportation & Writing & Editing

Translation, Interpreters, Logistics Copywriting, Editing &
Localization ... Trucking, Logistics Services, Proofreading, Tech Writing ...
Warehouses ...

The Benefits of Outsourcing

Do you want to maximize your revenue and minimize your expenses? Do you want to get access
to specialized skills and services? Do you want to concentrate more on your core business? Do
you want to save on money, time and infrastructure?
If your answer is yes to any or all of the above questions, you might be interested in outsourcing.
Outsourcing has several benefits. Outsource and take advantage of the benefits of offshore
outsourcing. Read the following benefits of outsourcing to find out more about how outsourcing
can give your business a competitive advantage!
1. Take advantage of the cost-advantages!
Outsourcing to countries such as India can give you access to cost-effective services. The same
services with the same level of quality are offered in India for a much lower cost! This cost-
advantage has increased the number of services that are being offered to India. Services such as
call center services, teleradiology, medical billing, etc can help you save up to 60% of your total
costs when outsourced! Getting access to high-quality services at a cost-effective price is the
biggest benefit that you can get while outsourcing. Outsource and reap the benefits of
outsourcing.
2. See an increase in your business
Another benefit of outsourcing is seeing a big increase in your profits, productivity, level of
quality, business value, business performance and much more. Outsourcing can help you see an
increase in almost every aspect of your business. Outsource and see your organization experience
an increase in every aspect with these benefits of outsourcing.
3. Save Big!
One of the benefits of outsourcing is that you can save on every aspect of your business and
increase your profits. When you outsource, you can save on time, effort, infrastructure and
manpower. Since you don't have to invest in infrastructure, you can also save on making
unnecessary fixed investments. Outsourcing removes the burden of changing or maintaining
infrastructure. You can also save on capital expenditure. Outsourcing can also help you save on
training costs, because you do not have to invest in manpower. These savings will help bring
about an increase in your revenue. Your organization can also save on investing in expensive
software and technologies.
4. Get access to specialized services
By outsourcing you can get expert and skilled services. This benefit of outsourcing has been
the key reason why several outsourcers opt for outsourcing. The function that you outsource
may not be your core competency but you can find an outsourcing partner who is specialized in
that particular business process. Your outsourcing partner will be able to provide more proficient
services. This is yet another benefit of outsourcing, because if you perform all your business
processes in-house, you will not be able to provide specialized and skilled services. Outsourcing
can give you this advantage.
Outsource2india is an organization that offers a wide range of specialized business process
outsourcing solutions to global clients. Outsourcing business processes to us has enabled clients
to cross-leverage our skills and expertise across industry verticals and technologies to achieve
greater efficiency and quality levels in the outsourced process.
At Outsource2india, we have dedicated teams that offer outsourced services across a range of
services which include Call center, Data Entry Servicesand Engineering Services, Healthcare
Services, Financial Services, Software Development, Research and Analysis Services, Photo
Editing Services, Creative Services and Web-analytics Services.
Outsource specific processes to our expert teams and increase your ROI. Contact O2I here.
5. Concentrate more on your core business
One of the benefits of outsourcing is that your organization will be free to concentrate on your
core business. By outsourcing all your non-core functions, your employees can be put to better
use and you will be able to see a huge growth in your core business.
6. Make faster deliveries to customers
Another benefit of outsourcing is that you can make quicker deliveries to customers. Your
outsourcing partner will be able to provide faster deliverables and you in turn will be able to
make quick deliveries to your customer. Faster deliveries can also help you save on time.
7. Improved customer satisfaction
With timely deliveries and high-quality services you can impress your customers. Outsourcing
can help you benefit from increased customer satisfaction and your customers will remain loyal
to your organization.
8. Benefit from time zone advantages
Outsourcing to countries such as India has a time zone advantage. Your night will be India's day.
With this advantage, your outsourcing partner can complete critical work and send it to you the
next day. Thus, your work is continued by your outsourcing partner even after your employees
go home. This enables the work to be completed much faster and gives your business a
competitive advantage. This is one of the benefits of offshore outsourcing.
9. Increased efficiency
Another benefit of outsourcing is increased efficiency. Your non-core business functions will be
performed efficiently by your outsourcing partner, while your core functions can be efficiently
carried out in-house. Thereby you can achieve overall efficiency and see an increase in your
profits.
10. Give your business a competitive edge!
Outsourcing can help your organization gain a competitive edge in the market. You can also get
access to specialized services for different business processes and thereby provide your
customers with best-of breed services. Such strategic outsourcing can give your business a
competitive edge among your peers. The benefits of outsourcing can give your organization a
cutting-edge in the worldwide market. Outsource and take advantage of the benefits of
outsourcing.
11. Outsourcing countries also benefit from outsourcing
Countries such as U.S, U.K, Norway and Australia amongst others can benefit by outsourcing.
The economy of these countries has increased tremendously after outsourcing. In the U.S, after
the outsourcing boom, the economy has increased, jobs have increased and the wages of
American workers have increased.
Related Articles
Read more about Job Outsourcing to India.
Find out more about Outsourcing to India.
Discover more about Nearshoring.
Please contact Outsource2india to outsource specific services to our dedicated team of experts.
Read more about the advantages and disadvantages of outsourcing.

Help | Infrastructure | Resources | Privacy Policy | Careers| Blog | Newsletter © 1999

- 2010 Flatworld Solutions Pvt. Ltd. All Rights
By outsourcing, you can:
1. Reduce overheads, free up resources
2. Minimize capital expenditure
3. Eliminate investment in fixed infrastructure
4. Offload non-core functions
5. Redirect energy and personnel into the core business
6. Free your executive team from day-to-day process problems
7. Focus scarce resources on mission-critical projects
8. Get access to specialized skills
9. Reduce need for internal commitment of specialists
10. Save on manpower and training costs
11. Control operating costs
12. Improve efficiencies through economies of scale
13. Improve speed and service
14. Level out cyclical or seasonal fluctuations
15. Eliminate peak staffing problems
16. Provide the best quality services, products and people
17. Be reliable and innovative
18. Provide value-added services
19. Increase customer satisfaction
20. Establish long-term, strategic relationships with world-class service providers to gain a
competitive edge
21. Enhance tactical and strategic advantages
22. Focus on strategic thinking, process reengineering and managing trading partner
relationships
23. Benefit from the provider's expertise in solving problems for a variety of clients with similar
requirements.
24. Obtain needed project management and implementation consulting expertise
25. Acquire access to best practices and proven methodologies
26. Spread your risks
27. Avoid the cost of chasing technology
28. Leverage the provider's extensive investments in technology, methodologies and people
29. Reduce the risk of technological obsolescence
30. Increase efficiency by consolidating and centralizing functions
31. Keep pace and minimize the impact of rapid changes in technology without changing your
infrastructure
32. Reduce the overall management burden while retaining control of strategic decision making.

© Copyright 2004 MDF Systems

Top of Page