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Outsourcing Is The Magical Cure To Beat The Recession by Daya Mukherjee

Outsourcing Is The Magical Cure To Beat The Recession by
Article Posted: 08/22/2011
Article Views: 66
Articles Written: 91
Word Count: 537
Article Votes: 0
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Outsourcing Is The Magical Cure To Beat The Recession

The threat of yet another economic recession looms large and world economies are fighting back panic, with memories of the last economic slump still fresh in their minds. Can outsourcing prove to be the magical cure that will help economies outlast the recession? The answer is a resounding 'yes'!

Outsourcing in any case has a proven track of being beneficial for companies who outsource work. Adopting this as a strategic approach to address the challenges of recession may be the only way to remain afloat in trying financial times. Partnering with the right outsourcing service vendor can actually help a company to not just outlast the recession but to actually benefit from it.

Even in the best of times, a company faces a host of challenges which become more critical when the economic climate turns hostile.

So, how does outsourcing help a company weather the storms of recession?

1. Cost savings. Irrespective of whether a company outsources its non-core functions during the good times or the bad, outsourcing results in huge savings in terms of lowered operational costs, employee maintenance cost, and a host of other overhead expenses. When these cost savings occur during an economic slump, it gives a 'cushion' to the beleaguered organization to utilize those finances in keeping their company on a financially strong foothold.

2. Anxiety is the dominant emotion during any economic recession. Is my job safe? Am I going to be the next in line to be given the pink slip? Will this company go under and will I be jobless? Or from the organization's perspective, how will I keep the devil of bankruptcy at bay? All these and many other similar dilemmas can have their solution in the seemingly unlikely form of outsourcing. When work is outsourced to a vendor thousands of miles away and at a fraction of what it would cost back in the home country, concerns about the work being completed on time are almost negligible. This is because when a wise decision has been made regarding the selection of the outsourcing service provider, it is an investment that will pay rich dividends in the long run, but more so during the difficult times of recession. This is because the vendor's employees will be working on your long-term projects without any fear of being axed unexpectedly and the client's work will continue unhampered. For an organization, unfinished projects will not be an issue.

3. No need to hand out mass pink slips. Perhaps one of the best ripple effects of outsourcing during a recession is the fact that it actually prevents a company from scaling down its employee strength. By the simple arithmetic of lowering operational costs by outsourcing, the pressure to conserve finances eases off, allowing employees to breathe is relief since their jobs are not in danger of being axed. The myriad advantages of globalization can be fully accessed only if outsourcing is seen in its correct perspective. Nations today are co-dependent and it is only a joint collaboration between the developed and the developing nations that a global calamity like recession can be met head-on without getting too scarred in the process.

Related Articles - Outsourcing, Outsource, Outsource to india, IT Outsourcing Services India, Outsourcing Services india, Outsourcing Company India,

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