What is Business Outsourcing & why Offshore Outsourcing to India?
Offshore Outsourcing is a process of assigning some specific business processes to an expert outside service provider. Outsourcing has become popular nowadays especially in IT and other industries for all the services that have been usually considered as intrinsic to handle a business. Many times it happens that the entire aspects of the business process cannot be handled internally, so it is outsourced. When the task is outsourced, the service provider will look after all the tasks and maintain the company’s assets.
But before Business outsourcing, it’s vital for businesses to know the advantages and disadvantages of outsourcing. Though outsourcing offers lots of benefits for the organization, but if it is not assigned to the right service provider it can pose certain difficulties.
Here’s a list of businesses that are commonly outsourced-
- IT outsourcing
- Legal outsourcing
- Web Design outsourcing
- Content outsourcing
- HR / Recruitment outsourcing
- Technical/Customer Support outsourcing
- Logistics outsourcing
- Manufacturing outsourcing
Potential Countries Outsourcing IT Services, Call Centers, and BPO In India
The United States of America is the largest outsourcing country in terms of both volume and value. The next largest outsourcing country is the United Kingdom. Other European countries are the third resource for outsourcing to India. At present United States of America ( USA ) and Europe – especially United Kingdom( UK ), Germany, France, and Switzerland are potential countries that outsource business to India more than others. Australia outsources in the onsite-offsite model. UK goes for the onsite-offshore model but takes a longer time to decide cost may not be that constraint. USA outsource most from cost saving perspective.
Difference between INBOUND and OUTBOUND Call Centers
Many Call centers and BPO companies prefer cold calling or phone marketing to find their prospects which are called outbound call centers while second types of call centers and BPO companies uses inbound marketing strategies to receive calls from their customers which are called Inbound Call Centers. Countries like India, Philippines, China, Malaysia, Thailand, And Brazil are the hub of BPO companies and great destinations for outsourcing business.
What are the 3 Categories of Offshore Outsourcing?
Offshore Outsourcing tasks should be of these 3 categories.
- Executive or highly skilled level positions can be made outsourced.
- Repetitive tasks like accounts payable, shipping inventory and data entry can be done outsourced.
- Specialized knowledge like IT support can be chosen for outsourcing which is also called IT Offshore Outsourcing
Advantages and Disadvantages of offshore Outsourcing for Business
“Offsourcing” is the another name of Outsourcing, and has pros as well as cons. But, the disadvantages of outsourcing is usually covered by its advantages.
Advantages of Business Outsourcing-
- Expertise and Speed: Outsourcer are specialized in their field, so when any task is outsourced, you can be assured that your tasks will be completed by a professional. The vendors possess sufficient technical expertise as well as equipment to accomplish the task with entirely professional touch. Also, the tasks can be completely quickly along with high-quality results.
- Risk Sharing: Risk analysis is one of the vital factors for identifying the result of a campaign. As the outsourced vendors are professionals in their field, they have better strategies to deal and avoid risks. Outsourcing specific tasks of the business process greatly assists the companies to shift some crucial responsibilities to the outsourced vendor.
- Better Focus on Core Processes: When you decide for outsourcing your business process especially non-core activities, you can be assured that you can completely focus on your business’s core activities. Outsourcing helps in fostering the business’s core process making the organization more flexible to adapt changes.
- Cost Effective: The main benefits of outsourcing the reduced cost of hiring full-time employees for your organization. Also, it assists in saving effort, time, training cost, and manpower, offering your overall cost benefit.
- Increased Productivity: Outsourcing helps businesses to experience numerous competitive advantage as well. With outsourcing, the productivity of different areas of a business can be increased significantly.
Disadvantages of Outsourcing
- Hidden Cost: Mostly, outsourcing is cost-effective, but may incorporate some hidden costs like some legal costs while dealing a contract across companies, or international boundaries might pose a serious threat. Getting the signed contract may be very time consuming and demand much efforts.
- Confidentiality Fear: When outsourcing your organization tasks such as payroll, recruitment services, HR, etc. there’s a risk of exposure of organization’s confidential information to the third-party. For sure, outsourcing include is a risk to security as well as confidentiality.
- Lack of Client Focus: With outsourcing, your organization may suffer from a lack of client’s focus. It is because the outsource vendor may be handling numbers of the organization at a time, so accordingly they may cater to their expertise needs which can diversify their focus.
- The quality of Work: Often offshoring can bring with them some possible redundancies for your organization. This may make your clients lose interest because of the poor quality of the work.
- Synchronizing the deliverables: If you choose a wrong, unsuitable partner for outsourcing your business, there can be several issues that may arise. For instance, sub-standard quality output, late delivery time frames and improper classification of responsibilities. Synchronizing these factors with in-house staffs is much easier instead of the outsourced partner.
Offshore outsourcing to India
hiring the right and experienced outsourcing service provider can cover up these disadvantages. Before outsourcing, take time out to know about your employees and clients, think from their perspective and then accordingly make an informed decision. Think of all the above-mentioned outsourcing’s pros and cons to know about which all tasks should be outsourced and which all should not.
- Efficiency and Productivity
It is quite easy to understand, that dividing a single work into multiple units can always improve the quality and quantity of the required work. Outsourcing does exactly the same. With an icing to the cake, it is known how Indians can manage differences and work diligently towards a common agenda. This means that there is always a greater chance to expect results in lesser time, with minimal flaws.
- Reduced Operational Costs
When a company decides to place themselves in India, a major advantage is the cost reduction. With the capital being cheaper, and labor easily accessible, where a great control over the operational costs improves the budget and financial department of the company. Outsourcing places the organization’s odds and it becomes the responsibility of the service provider to maintain and grow the company’s finance department.
- Risk analysis and Risk Sharing
This is one the most important aspects of outsourcing. Sharing the resources with a third party vendor implies that even the risk analysis is a joint venture. Since a company decides to put their resources in the service provider, it is the service provider who is to study and analyze risks. And it is usually observed that service providers in India are the specialist in risk analysis, then provide a better risk management. These are just a few of a lot of points that justify a company deciding to outsource themselves in India. Not only do the organizations find it easy to grow in India, there is also a sense of trust from the Indian professionals and organizations. India has observed a massive boom in companies resenting themselves in investing in India and using their services to maximum potential.
Outsourcing IT projects , Digital marketing services and solutions to India is a rapidly growing Companies want to develop products/projects fast at a cost-effective price. Most of the IT Services and tasks ranging from small-to-mid-level and top level organizations are outsourcing services & tasks to India.
Few Facts about India and why should companies outsource to India –
- India has the largest technical and professional talent pool in the world
- India offers flexible pricing options
- India provides consistent high-quality services
- The Indian Government is stable and offers attractive IT policies
- Indian companies provide the quickest time-to-market
- India has more English-speaking people than the US & UK combined
- Many Multi-billion dollar companies outsource to India
How can We help you?
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