Outsourcing Benefits Both Service Providers And Buyers

June 13, 2010

Outsourcing has become a phenomenon of the present and it is popular among those offering services and the firms that are buying services from outsourcing locations.

Outsourcing to India has been a strong trend in the last ten to twenty years. Despite a glitch in the economy, outsourcing has maintained fairly stable amounts of growth during the recession, in contrast to other industries, according to 2010 statistics on outsourcing in India.

A host of outsourcing firms, like web design, web development, mobile applications, game applications and software developing firms are involved in providing outsourced products to a global market. With dwindling demand seen in the U.S. market, many outsourcing giants like Wipro and Infosys are now expanding to other markets like Europe.

Similarly, many firms are now considering outsourcing destinations closer to home as opposed to the traditional practice of offshoring to faraway destinations. This option of onshoring or nearshoring gives companies the distinct advantage of keeping an eye on the service provider’s quality of projects completed and allows for closer monitoring of projects due to less traveling distance.

The choice for onshoring or sending projects to rural towns that have a lower cost of living that large cities is another trend that is catching on as the U.S. braces for a recovery in the offing. In all likelihood, the mutual relationship with service vendor and the buyer ensures that outsourcing is here to stay, regardless of the state of the economy.

During the downturn in the economic, news of layoffs were rampant and continue to cause problems of unemployment and lower consumer spending in the American economy. But, outsourcing is unique in the sense that it does not cater to a single market and talented people have a way of finding work via outsourcing. This is true for graduates who have skills in engineering, English, journalism, medicine and a host of other emerging technologies. Hence, outsourcing is not just about call centers or picking up phone calls, but there are a variety of telecommute jobs available for a diverse talent pool of people.

Some factors that work well for outsourcing is that there is no permanent commitment between the service provider and the employer. It is a ‘work at will’ commitment, which means you can stay or leave your work when you decide to do so. When an employee feels that the company is not a good fit, he or she can immediately end the work relationship. This is also another way of saying that you’re your own boss.

For large companies, there is less employment overhead. In this case, when you require staff during a peak season, you are ensured that you will have assistance via outsourcing. And when you feel that you need to cut down on your payroll, you can also cut down on the staff you’re using. In this way, outsourcing can be extremely cost effective, from a management perspective.

As far as projects are concerned, you can outsource just about any type of project with any amount of difficulty. Qualified people who you might end up paying more can do complicated projects. And less tedious tasks like data entry can be done on a minimum wage type payment basis. In reality, this might work out better than having your own in house engineers and data entry operators, for example, whom you might use for specific projects for a certain period of time.

For small business owners, outsourcing can be a great way to find support staff. You can run your virtual office by having someone do your simple office tasks, while you focus on what is more important, i.e. the strategies behind your operations.

In the same way, working form home gives the telecommute worker much more flexible hours. He/She is more likely to have job satisfaction because there are many perks to working from home. It also cuts down on commuting, makes you available for emergencies at your home, and gives the self-motivated business person the freedom to choose the kind of work one would like to focus on.


One Response to “Outsourcing Benefits Both Service Providers And Buyers”

  1. climacandy on June 25th, 2010 3:16 am

    Aside from India, Philippines is also a great country to outsource with. They are a good example of a competent outsourcing team that can provide their clients with top quality work. As an added bonus, they speak and understand fluent English, so you don’t have to worry about the language barrier.

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