Posts tagged advantages of outsourcing
What is Outsourcing?
Outsourcing is contracting out the management and development of a process or production to external sources. Many online businesses have found it desirable to outsourcing website. To remain competitive, many companies do outsourcing website as a way to reduce costs, increase efficiencies, and refocus critical resources. This way the companies can concentrate on their core competencies leaving rest of the business activities to their outsourcing website partner.
Why Outsourcing Website for designing?
- Outsourcing Website for designing provides a unique combination of design, marketing, publication and technical computer skills. In most companies there is relatively little interaction between the marketing, computer and publications departments. Often the website development is assigned to one department. The results – too heavy design with slow download or intense copy without marketing hooks.
- Offers a facility with current technologies in multimedia design, database, and interactive functionality. Few companies can afford to maintain a staff with this expertise which makes Outsourcing Website for designing is an economical choice.
- Leverages an expert team drawing from the top designers and programmers in their countries as they are getting paid good wages (in relation to their cost of living) by Western clients.
- Outsourcing Website for designing levels the playing field. Gives small companies access to the know-how, capital, economies of scale and other resources that large companies enjoy.
What are the Advantages of Outsourcing Website?
1. Focus on Core Activities:
In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities that are important without sacrificing quality or service in the back-office.
2. Cost and Efficiency Savings:
Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.
3. Reduced Overhead:
Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily.
4. Operational Control:
Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available.
5. Staffing Flexibility:
Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you’re done.
6. Continuity & Risk Management:
Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provide a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.
7. Develop Internal Staff:
A large project needs to be undertaken that requires skills that your staff does not possess. On-site outsourcing of the project will bring people with the skills you need into your company. Your people can work alongside of them to acquire the new skill set.
If you want your organization to stay ahead of competition, concentrate on core competencies and make use of the latest technologies, then outsourcing website can help your organization achieve all this and more.
Companies often get off-shore outsourcing offers from low income countries, such as India, Pakistan, Bangladesh, Bulgaria, Romania and others. In the key European IT trade fairs companies from these countries also participate and try to sell their off-shore outsourcing services. Lately, we often hear from European companies that when they receive an outsourcing offer, they only get information on the positive aspects of off-shore outsourcing.
There are quite a number of advantages of offshore outsourcing:
Cost reduction and cost structure optimisation: is (still) one of the major driving force of outsourcing. In low income countries labor is cheap compared to wages in Europe or the United States. Companies often offer their services between € 5 – 35/hour. This, of course depends on a number of factors, such as the length and value of the project, number of people involved, qualifications, technology required and many others. Price is also influenced by marketing considerations or the potential of establishing a long term relationship. Beside labour, overhead costs are also often much lower in low income countries than in the USA or Europe. Further, by outsourcing IT processes, companies not only can lower but also re-engineer and optimise their cost structure. Certain fixed cost elements could be turned into variable costs, for instance. Outsourcing can also help to achieve more predictable cost levels.
Immediate access to technical staff: one of the advantages of off-shore outsourcing is the immediate availability of the required number of qualified technical staff. In the last couple of years in Europe we all had problems finding the right people at the right time … or keep them with the company. Low income (or developing) countries often have qualified, well educated technical staff in abundance. Most companies we have visited in the last couple of years for technical positions only employ people with university degrees. These people often have many years of experience in various technologies, project management methodologies or vertical business domains.
Immediate access to technology: technology changes rapidly. Following all the developments, even in one or two technology domains, is very time and resource consuming. Staff has to follow courses, learn the new technology, build libraries and gain experience before the newly introduced technology can be used efficiently. IT outsourcing can shorten the learning curve of new technologies and reduce cost spent on training.