Benefits of Outsourcing

One of my friend has given a very good comment “What is the benefit of outsourcing?”, so I have issued this postings which will give a fair idea as to why we have to outsource. Many are under the impression that outsourcing can happen for data entry kind of job is outsourced but it is totally wrong.

Now BPO has taken a new name KPO i.e. Knowledge process outsourcing. Cost reduction is one of the main benefit of outsourcing but at the same time we are adding more business as we are diverting our precious time in getting new clients than looking into routine activities or non-core activities which can be easily outsourced to a third party service providers in countries like India, china, Philippines etc. Where we have skilled and trained resources availability at a very competitive pricing.

Cost is no longer one of the top benefits of outsourcing. Many companies are now looking at strategic value and speed to market as the primary benefits of outsourcing.

Here are the some of the benefits from outsourcing….

• Save on manpower (Payroll) and training costs
• Control operating costs
• Improve speed and service
• Increase processing capacity specially for a seasonal nature of job

• Eliminate peak staffing problems
• Provide the best quality services, products and people to the customers
• Be reliable and innovative
• Be competitive in the market in terms of pricing to the customers

• Provide value-added services
• Increase customer satisfaction
• Enhance tactical and strategic advantages
• Focus on strategic thinking, process reengineering and managing trading partner relationships
• Benefit from the provider's expertise in solving problems for a variety of clients with similar

requirements.
• Obtain needed project management and implementation consulting expertise
• Acquire access to best practices and proven methodologies
• Avoid investment in technology
• Concentrate more on diversifying the business
• Leverage the provider's extensive investments in technology, methodologies and people
• Reduce the risk of technological obsolescence
• Increase efficiency by consolidating and centralizing functions
• Reduce the overall management burden while retaining control of strategic decision making.
• Reduce overheads, free up resources
• Minimize capital expenditure
• Eliminate investment in fixed infrastructure
• Offload non-core functions
• Redirect energy and personnel into the core business
• Free your executive team from day-to-day process problems
• Focus scarce resources on mission-critical projects
•Get access to specialized skills new technology in communication like

VOIP,Teleconferencing,Screen sharing applications like Gotomeeting
• Reduce need for internal commitment of specialists