Outsourcing

"Outsourcing is the strategic use of outside resources to perform activities traditionally handled by internal staff and resources”.

Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers, who become valued strategic business partners.

Outsourcing, which has always been attached with cost saving, has reached such stage where it is more a strategic decision for growth and advancement than a technique of cost reduction. Offshore Application Development Outsourcing is a trend which is helping organizations in streamlining their core processes with a significant cost advantage.

More than fifty percent of the fortune 500 companies are looking at India to outsource their IT requirements. According to a global financial research firm, India will remain a top outsourcing destination.

benefits of outsourcing

Why do companies outsource
There are very simple reasons:

Cost Saving:First and foremost it gives cost advantage.There is no upfront cost involved.Thus,reduces,IT budget of organisation.
Focus on Core Business:It enables organisation to focus on core processes for which it is known.
Access to Expertise:Another very important factor is access to world class IT expertise.
Risk Sharing:Outsourcing also involves transfer of risk to the partner company.
Time Saving:Organisations also save significant time.
Capacity management:Insufficient resources are available internally.
Innovation:external knowledge acts as catalyst for innovation

Outsourcing

Industries