If one were to give a simple definition of outsourcing, what would it be? Outsourcing can be defined as contracting out your non-essential functions to those who have expertise in that field, leaving your human resources free to focus on what they do best, namely, making profits and expanding your business. Outsourcing has been defined by an online magazine, 'Entrepreneur' as"The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual".
Benefits of Outsourcing
- Obviously, the most talked-about benefit of outsourcing is cost savings. Companies now know that by the simple act of outsourcing their non-core, repetitive and time-consuming jobs to external agencies (preferably those located in Third World countries) at rates far cheaper than what it would cost them in their home country, they stand to make enormous savings. And that's not the only savings they make. By freeing up their human resources and having them more gainfully channelized into actual core functions of the company, outsourcing has a real and tangible impact on the company's productivity and expansion.
- It offers you flexibility. Start with small projects, and depending on the success achieved, gradually move on to larger chunks of your business that would yield better results with outsourcing rather than block in-house employees working on them. If you have tied up with an offshore outsourcing vendor instead of a freelancer, then you have the flexibility to scale up or down your volume of work.
- It helps you to reduce your overhead costs. For example, if you want to expand your pool of customer care executives, outsourcing your customer care requirements to call centers in India makes sense. This is because your in-house call center's capacity may exceed your existing telephone capacity. By outsourcing work to a remote employee your company also saves expenses incurred on a local, physically present employee (taxes, employee benefits, maintenance costs, etc)
India is the hub of the outsourcing world
India leads the outsourcing industry today, be it in any field that needs to be outsourced – customer care, data entry, transcription services, accounts, law, software development and much more.
Outsource but to the right person!
Till recently, the freelancer had been the face of the outsourcing industry. That was fine as long as short-term and time-bound projects were being outsourced. But, buoyed by the successes of these initial forays into outsourcing, companies were now looking to outsource larger volumes of work and for lengthier periods of time, some even toying with the idea of ongoing, continuous processes. That's when a new entrant entered the field. The virtual employee.
Today, it makes greater business sense to outsource actual office tasks, that are not time bound, to a virtual employee. He is like any other locally employed employee, except that he or she sits in an office thousands of miles away from you. Your virtual employee works exclusively for you, is dedicated only to your company and is fully accountable to you and controlled by you. The office of the offshore outsourcing vendor who gives you the virtual employee is actually like an extension of your office in India.
And thanks to all the modern means of communication (internet, email, VOIP, video conferencing), barriers of time and distance are rapidly crumbling.
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