Outsourcing

 Outsourcing can be defined as a task or process or function which is performed , maintained and even the results are executed by the employees within a company but is instead it will be done on a contract basis with the help of external vendor who will be a  party and this contract or outsource will be for a specified period of time between the company and the vendor. There is a strategy named as offshore efficiency ring where all the functions of internal resources will be executed operational by the external resources which will help the company to gain some benefits in various departments like manpower, financial department etc. In this outsourcing, a third-party vendor who will become a valuable business partner can work either off-site or on-site.

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REASONS FOR CHOOSING OUTSOURCE:

->The main reason for this strategy is to save huge amounts of money and time which are very crucial for the success of any company.

->Concentrate on main areas of business which is core to that company.

->To gain more flexibility in the company.

->To improve the focus on what we need to do in order to gain huge success in less time.

->Operational cost will be decreased.

->Man power will be reduced as the tasks will be divided among more number of employees.

->To work more efficiently.

->To adapt the concept of smart work.

Through this strategy, there are some jobs which will be mainly focused on. Some of the functions which will be outsourced to India are given below:

-> Accounting

->Information and Technology

->Telecommunications and Networking

->Insurance Administration

->Security

->Human Resource Administration

->Marketing

The above functions are helpful in doing the task in a smart way but there are some more functions which are performed by outsources which are helpful in gaining more benefits by the company. This is called as office functions which will be done before offshore. Some of them are mentioned below:

->Transcription / Typing outsourcing

->Financial / Accounting outsourcing

->IT support functions outsourcing

->Project management outsourcing

->Customer support outsourcing

Advantages of this strategy :

-> Huge change in the operational cost which is running out of control by use of improvised way of operational cost control.

->Time will be saved mainly in the delivery of the project or product to the customer.

->Better risk management.

->There opportunities to expand their business due to smart work, save in time, cost efficiency etc.

->Developing of internal staff and acquisition of new skills through working with the outsourcing vendor.

To decide whether this technique will be helpful to gain more success to an organizationcompanyapny one must follow the below rules:

->Define and understand your company objectives and goals before outsourcing

->Develop a strategic vision and plan before you outsource

->Select the right vendor through a vendor selection process

->Invest time into the ongoing management of the outsourcing relationship

->Create a properly structured outsourcing contract.

->Frequent communication between the vendor and the company.

->Being in touch with the offshore team to solve any issues if arises and delivery of the project can be of greater quality.

Some of the companies who use this technique are mentioned below :

->Genpact.

->Tata Consultancy Services BPO.

->Wipro BPO.

->Aegis Limited.

->Serco Global Services.

->Infosys BPO.

->WNS Global Services.

->Firstsource Solutions. 

This outsourcing technique is a great way of expanding one's business which will help themselves and also change one's life as it will create new opportunities for a huge number of people. Key to success depends on how one uses the technique in a good or bad way as we know a coin has two sides in the same way this has two sides which are entirely dependent on company and vendor.