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O
utsourcing: What and Why?


Outsourcing is hiring companies overseas to do the work which in normal conditions can be handled in-house.

Outsourcing is making a lot of business sense in today’s economic world today. Technologies like telecommunication, information technology and media have given a new look to the traditional method of doing business. Electronic commerce and enterprise systems have become a way of life. They have made outsourcing considerably easy and affordable.

Let’s take a look at various reasons for outsourcing:

  • Lack of time
    Companies are usually busy meeting deadlines, promoting their products in the market to manage all the in-house functions.
  • Core business
    Companies generally concentrate on their core areas of business to expand their growth.
  • Lack of skills
    Certain assignments require highly qualified personnel. Many difficulties arise while hiring them unavailability and high payment being the important factors.
  • Technology
    World has come closer with the advent in technology like telecommunications, internet, media, eCommerce, enterprise systems etc the requirement for professional to maintain these systems has also increased. Problems arise if you don’t find them in your own country or when they demand too much pay scale.
  • Capital investment
    When you outsource work you need not invest in the infrastructure. You pay for the outsourced work.
  • No expenditure on manpower and training
    The Company to whom you have outsourced your work takes care of it thus reducing your headache.
  • Quality work at a faster rate
  • Quality and value added services
  • Amicable customer relationship
  • Availability of updated technology
  • Costs required for technology and manpower are reduced considerably
  • Work is done 24/7
  • Customized solutions
  • Role in important decision taking
Global big shots like Microsoft, IBM, Motorola, Hewlett-Packard Phillips, General Electrics, Reebok etc are good examples for outsourcing. They have reaped considerable profits by outsourcing their work.

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