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Outsourcing Of Business – Key Statistics

August 11th, 2011

Outsourcing statistics have for many years shown the outsourcing of business is an increasing trend among companies in the US and other Western nations. However, it is since the 1990s that the outsourcing market has grown tremendously. Of course this has also generated a lot of political heat with debates on what outsourcing really means for developed economies and whether it really is for the benefit of their workforce as a whole. Outlined below are some interesting outsourcing statistics. Outsourcing of business is most significant in the Information Technology industry. In the global outsourcing market, IT takes the lead at 28% of the total outsourcing market. This primarily came about due to the shortage of e- business application developmental skills in developed markets which made it expensive to hire skilled personnel. The Human Resources industry is another increasingly outsourced business process taking   15% share of all outsourc ..Continue reading.. »

Outsourcing Management Success

August 10th, 2011

If a company is considering outsourcing any part of its business which it considers non-core, it should always find a way of making sure that the outsourcing relationship is a success. The business should not only focus its energy on pushing down costs but in improving quality of goods and services. However, outsourcing management is not such an easy task - but it is necessary if both the business and the service provider want to mutually benefit from the relationship. Outsourcing management starts with both the business and the third party understanding the goals of the business. This will inform how the performance of the outsourcing processes will be assessed. For best results, outsourcing management must involve both parties being familiar with how the respective internal processes of each party. Both parties should ensure that the relationship is carried out to the benefit of a ..Continue reading.. »

Outsourcing Management – Comparing Different Countries

August 9th, 2011

One of the decisions that companies in the West must make in outsourcing management is which country to outsource the business to. How do the different countries compare and what are the advantages or disadvantages of each? Let’s take a look at some of the more popular countries for hosting outsourced services. India is by far the leading country in offering offshore services. It has a strong local skill set for IT services, remote infrastructure evaluation and general business process outsourcing (BPO) such as call centers. Indian employees are able to meet the demands of a technology driven market. What’s more their companies have shown precision in keeping records such as employee pay and cost structure. This has seen various US companies outsourcing management of other non-IT areas such as Human Resources (HR), administration and accounting to India. But in the recent past, India’s reputati ..Continue reading.. »

Outsourcing For Business – There Is A Downside

August 8th, 2011

Outsourcing for business is a fast growing trend and has increasingly been accepted as an integral part of conducting modern day business. The benefits of outsourcing are well known and revolve around time and cost savings. However, just like every coin has two sides, so does outsourcing for business. A company should be careful that these shortcomings, however negligible do not negate the benefits that would otherwise be realized by outsourcing. The first drawback in outsourcing for businesses is that it poses a major threat to a company’s internal innovation capacity. When a company develops a habit of taking on a third party service provider for key internal processes, the company’s internal knowledge base starts to diminish. Thus, the company’s delivery of a quality experience to its customers may deteriorate since internal staff may not be able to keep up with changing market trends. Another downside of outsourcing for business ..Continue reading.. »

Offshore Outsourcing – The Facts

August 5th, 2011

Offshore outsourcing kicked off in earnest with the administration of former American president Bill Clinton. At the time, the U.S had been trying to fight with inflation so as to revive the struggling economy. This brought about numerous changes in economic policies including the implementation of the North American Free Trade Agreement (NAFTA). This saw businesses using this and other means of staying a step ahead of their competition. Due to the high cost of American labor, offshore outsourcing became an option that many corporations had to consider. Outsourcing has of course been considered by some as too radical a remedy for doing business. This is probably informed by the fact that it has led to many families in American and other Western nations being left jobless and with no source of income. This is because organizations are contracting other companies to render services that were previously handled locally such as payroll, software ..Continue reading.. »

Offshore Outsourcing – Ethical Concerns

August 4th, 2011

In some instances, companies may opt for offshore outsourcing to enable them to focus their attention on the core values of the firm. Paying small scale contractors on the other side of the world is now possible through online payment channels such as PayPal, MoneyBookers, Xoom, Payoneer, 2CheckOut and many more. Outsourcing enables the organization to cut down on labor costs and the cost of procuring expensive technology. And it is not just American manufacturers offshore outsourcing their work to Asia, South America and Africa. A number of large companies in other countries are contracting American employees for work. For instance, major non-American automobile manufacturers such as Toyota, Mercedes Benz and BMW have set up huge manufacturing plants in the United States. However even as the company tries to maximize its profits, certain ethical questions beg answers. Offshore outsourcing is gain ..Continue reading.. »

Outsourcing Of Business –The Key Elements

August 3rd, 2011

Outsourcing of business processes is an organizational practice wherein a company solicits a third party to conduct various activities on its behalf. This solicitation is usually done under contract to a company that either specializes or has the technical know how to best perform those particular activities. Though outsourcing has been around for years; initially existing mostly as accounting outsourcing, its use has only recently become wide spread. This can be attributed in part to the dynamism of the business environment and the continuous pursuit for higher profits at lower costs. The main goals in outsourcing of business are to reduce operational costs and focus on meeting the primary objectives of the organization. As a result the activities that are outsourced include operational activities such as billing, payroll and customer service call center services. To get a clear view of business process outsourcing, it can be separated into ..Continue reading.. »

Software Outsourcing Company – Using One Can Increase Your Profits

August 2nd, 2011

As opposed to trying to develop all business applications in house, using a software outsourcing company is the way to go for businesses that want to make more profits and offer their clients excellent service. The contracted organization is likely to frequently upgrade its technical knowledge base to be able to keep up with the competition. This is important given that the current business environment requires that organizations be fast paced and efficient. And since technology is ever changing, businesses may not always be able to have employees that have the necessary skills to develop world class software solutions. Training employees may seem worthwhile at the onset but this will only end up eating into the organization’s capital. All this is what makes software outsourcing increasingly attractive. That said, software outsourcing can be a complex process despite its numerous advantages. It wou ..Continue reading.. »

Business Outsourcing Company – Challenges And Opportunities

August 1st, 2011

Many businesses seem to prefer hiring an outsourcing company instead of having an in house department perform a certain task. This move is usually aimed at improving capital utilization and lowering overall costs. Companies are increasingly hiring a business outsourcing company to perform both tangible and intangible processes where the company does not have sufficient internal competence. However, as much as outsourcing offers business great opportunities, it also poses challenges to the business and a company ought to be strategic in making any decision to outsource if it is to survive in the competitive world of business. Some of the most notable downsides of business outsourcing companies are language barriers, differing cultures and sometimes time zones that are wide apart. Such problems pose a challenge to both the client and the business outsourcing company. The other side of the coin is that ..Continue reading.. »

Benefits Of Outsourcing- It Saves You Money

July 29th, 2011

Company operators in the business sector are currently faced with one major challenge, increased operation costs. As a result of this challenge, they have to find ways of achieving high productivity within the ‘boundaries’ of their income generating levels. Luckily, they can outsource these specific services for a lesser fee than if they were to employ more workers. Companies that have chosen to outsource these services are now enjoying the benefits of outsourcing such as: One major benefit that has increased the popularity of outsourcing is cost reduction. Companies that have opted to outsource as a way of saving money can proudly boast of having enjoyed the benefits of outsourcing. When you choose to outsource, you get rid of the extra expenses incurred through management of employees, either through scholarships or training staff to improve on their skills, as outsourcing provides you with already trained employees. Thus, outsourcing ..Continue reading.. »

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