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?
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.
Why Opt for Outsourcing?
Industry trends show that companies that have been asking the question ‘why outsource’ have become vocal advocates of the offshore model. Outsourcing work has come to be a tried-and-tested model and is recognized as a long term competitive strategy for success. The question going around now is not ‘why outsource?’ but ‘why not outsource?’
Reasons for Outsourcing
The economist, Adam Smith, says in his treatise The Wealth of Nations, "If a foreign country can supply us with a commodity cheaper than we ourselves can make it, it is better to buy it of them." Outsourcing as we know it today is merely a progression of an idea that has existed since early days of trade.
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.
India's software exports are growing by more than 30% per year[9], which has triggered protectionist measures on the part of US government, especially the IRS, which recently passed regulations to make outsourcing research harder[10]. However, these regulations don't forbid outsourcing research, and many Western corporations like Eli Lilly, P&G, Henkel, Dow AgroSciences, Novartis and Indian scientists are using web as a forum to easily get around such regulations lawfully.
Quality improvements: Quality is especially difficult to define in software development. In data entry operation we can measure quality by the number of typing errors per 1000 data records. So when can we say proudly to our partner in software development "Our quality is excellent"? Well, one thing is customer and partner feedback. But this itself does not justify our proud announcement "Our quality is excellent". We can say that our quality is excellent if, beside customer feedback, we can also prove that our software is made by using "standards and repeatable process".]