Why Outsource Work?
Because you don’t have the time to do it yourself.
ou’ve got a product to develop and you’ve got to get it into the market before your competitor does.
Because you don’t have the money to do it yourself.
Your business is growing exponentially but your resources can’t cope with the growth.
Because you’d rather focus on mission-critical issues.
You’re not interested in frittering away time and energy on non-core functions.
Because you don’t have the skills to do it yourself.
You need the best talent in the world, but it’s scarce out of reach just not available in your country.
In today’s globalized and networked economy, outsourcing has never been so easy or made so much business sense. The question is not “Why outsource?” but rather, “Why not?”
The Convergent Economy
Converging technologies of telecommunication, information technology and media have redefined the way we do business, with electronic commerce and enterprise systems becoming a way of life.
Correspondingly, there has been a sharp increase in the need for qualified software professionals to manage these functions. Demand exceeds supply, and the dearth of human resources has resulted in increased personnel costs, longer time to market and longer product development cycles.
Chances are, you won’t find these highly skilled people in your own backyard.
Yet you need them more than ever, now that competition is swooping down faster than business opportunities are taking off. And you realize that without them, your big dreams for a flourishing enterprise could rapidly go up in smoke. But you don’t have to manage all business functions in-house.
Outsourcing provides a neat solution to several of your business problems.
25 Reasons Why Outsourcing Makes Business Sense
When you consider the advantages of outsourcing, you’ll realize there’s a lot to gain by using it as an intrinsic part of your business strategy.
By outsourcing, you can:
Reduce overheads, free up resources
Avoid capital expenditure
Offload non-core functions
Get access to specialized skills
Save on manpower and training costs
Reduce operating costs
Improve speed and service
Establish long-term, strategic relationships with world-class service providers to gain a competitive edge
Enhance tactical and strategic advantages
Focus on strategic thinking, process re-engineering and managing trading partner relationships
Spread your risks
Provide the best quality services, products and people
Be reliable and innovative
Provide value-added services
Increase customer satisfaction
Avoid the cost of chasing technology
Leverage the provider’s extensive investments in technology, methodologies and people
Benefit from the provider’s expertise in solving problems for a variety of clients with similar requirements.
Focus scarce resources on time-critical projects such as application re-engineering
Obtain needed project management and implementation consulting expertise, along with access to best practices and proven methodologies
Reduce the risk of technological obsolescence and increase efficiency by consolidating and centralizing functions
Keep pace and minimize the impact of rapid changes in applications and standards
Extend the reach to more trading partners quickly and efficiently
Reduce the overall IT management burden while retaining control of strategic decision making.
The Outsourcing Institute finds, “Outsourcing is rapidly becoming an accepted management tool for redefining and re energizing the corporation. It challenges today’s executives to rethink the traditional, vertically integrated firm in favor of a more flexible organization structured around core competencies and long-term, outside relationships.”
Global giants such as IBM, Microsoft, Novell, Oracle, AT&T, Fujitsu, Motorola, Digital, Hewlett-Packard Philips, General Electric, IBM, Reebok, Fujitsu, British Aerospace, General Motors and Sears are keeping ahead of their rivals thanks to the competitive advantage conferred on them by some of the best software companies in India.
You too can benefit immensely from a successful outsourcing strategy.
Several convergent forces like an exponential increase of technology in the workplace, electronic commerce, enterprise systems and a sharp increase in internet related new entities are resulting in an increased demand for software professionals. The need is further compounded by the lack of trained programmers in the developed countries, especially United States , Western Europe and Japan.
Demand exceeds supply, which has led to increased labor costs, longer product development and even longer time to market. A recent Wall Street Journal article related a greater willingness on the part of CIOs to outsource software work that is not mission critical.
Reduce your marketing and software delivery costs
Gain access to global buyer base needing software development
Manage your projects online with buyer participation
Neutral marketplace with global choices
Economies of 24 hour X 7 days a week low-cost software development with access to global consulting firms.
For instance, Advanced communication technology has allowed global software teams to become commonplace. Some software companies are organizing global software teams to employ the best talent in the world.