Posts tagged Outsourcing

Outsourcing Website

Outsourcing of Website: Reduction in Cost

1 year ago
by blogadmin in
Outsourcing Website

Outsourcing Website

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.

outsourcing

Indian companies make tighter grab on outsourcing: Nasscom

2 years ago
by blogadmin in

Bangalore: India will continue to lead the worldwide outsourcing market, the percentage augmented from 51% in 2009 55% in 2010. As part of the nationwide GDP, the revenues of the division are predictable at 6.4% and the current.

The software industry body the tip of the ‘National Association of Software & Services Companies (Nasscom) predicts-BPO industry (excluding hardware) sales grew 19% to 76 billion dollars. Som Mittal, President, Nasscom said on Wednesday, pent-up demand for IT-BPO services, the return of discretionary spending for new business models that encouraged the first time buyers and re-invent the value proposition for existing items key industrial performance.
The banking, financial services and insurance ( BFSI) vertical and US region accounted for the largest revenue growth. While the growth rate for emerging verticals and new geographies will also be robust at 1.3 to 1.5 times of core segments. Exports remain the mainstay of the industry contributing $59 billion at a growth rate of 18.7%. The IT services will grow the fastest at 22.7%. On the other hand, the domestic markets grew 16% to touch Rs 787 billion. Increased technology adoption across government, corporate and SMBs led to an increase in outsourcing within the domestic markets. The BPO export segment will grow by 14% to reach $14.1 billion. The BPO sector was impacted by delayed decision making and deal restructuring in the first half of the year, but picked momentum in the second half.

Nasscom said the engineering services landscape in India now reflects maturity and diversification to partner with global corporations. The engineering design and products development segment is expected to generate revenues of $11.3 billion growing 13.4% this fiscal. This is driven by the increasing use of electronics, technology convergence and need for localized products.

The next economy, software and services is expected to grow by 16% -18%, and revenues of $ 68-70000000000. The domestic market is estimated to increase by 15% and 17% of revenue of Rs 90,000 crore.
As discussed below, this decade marks a transformation for the industry. the delivery of business transformation is always focused, has the confidence and risk management through modern restructuring of the lineup and at the same time allow sustainable savings and value, “said Mittal.

Advantages of outsourcing

2 years ago
by admin in

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.

Advantages and Disadvantages on International Outsourcing

2 years ago
by admin in

In 2007, Standard & Poor’s reports that companies spent some US$150 billion on international outsourcing. Market research firm IDC sees that amount rising 65% to $250 billion by 2012.

Technology-based outsourcing is one of the fastest growing trends in international trade. However, operational outsourcing involves tradeoffs between client cost-savings and loss of control on the outsourced activities or functions.

Advantages of International Outsourcing

An international outsourcing firm can save the high maintenance costs and the specialized attention demanded by back-office operations like electronic securities transaction processing. Freed from the ongoing burden of daily back-office tasks, clients are able to focus on core competencies such as sales and new business underwriting.

According to third-party systems provider Cyber Futuristics, companies that outsource non-core operations also enjoy the following advantages.

  • Outsourcing specialists have the technological resources, expertise and mandate to invest in new technologies that would otherwise be much more costly and risky for a client company to continuously manage on its own.
  • By outsourcing to a team of technology experts, client companies access skills and training expertise not internally available while saving on human resource costs. The latter ranges from recruitment, training and performance incentives to employee group benefits.
  • Ideally, highly skilled outsourcers increase their client company’s productivity while lowering costs.

Disadvantages of International Outsourcing

One of the most publicized potential disadvantages to outsourcing is poor quality control. Case in point is last year’s melamine-laced pet food crisis, caused by a Chinese outsourcer overly focused on cost-savings.

Other disadvantages include:

  • Lengthy bid and negotiation processes to find an appropriate outsourcer.
  • Difficulty selecting the best outsourcer for specific business needs because differences among service providers are unclear.
  • Outsourcers often demand longer term contracts, which can decrease company flexibility.
  • Loss of strategic alignment with client company goals once operations are outsourced.

Within the client company, fear of losing jobs to outsourcers negatively affects employee attitudes. Employee morale and motivation falls, just as company loyalty decreases.

Outsourcing in the IT industry

2 years ago
by admin in

Information technology is one of the most popular areas of outsourcing. It can, however, involve a range of issues. For example: software, equipment, premises, people, third party agreements, and so on.All these will need to be carefully considered, and steps to address them included in the transition plan, the SLA and the outsourcing contract.

THE EARLY STAGES

When considering the outsoucing of IT services, management must be very clear with respect to its expectations. It must clearly define the services themselves – in other words, exactly what it wants to be delivered.

It is always a good idea to measure these against the existing services, almost a benchmarking exercise. At the very least, this will provide useful data for use downstream, when consideration of suppliers is undertaken.

Having defined the requisite IT service, costs should be considered. Again, it is wise to start close to home. What are the current costs? How are these projected to increase (or decrease)?

Essentially, a picture is being built here of where the organization currently stands, and where it wishes to stand, with repsect to the IT service. Having established this information, the path to IT outsourcing should be far clearer.

Outsourcing Risks & Rewards

2 years ago
by admin in

In 2007, Standard & Poor’s reports that companies spent some US$150 billion on international outsourcing. Market research firm IDC sees that amount rising 65% to $250 billion by 2012.

Technology-based outsourcing is one of the fastest growing trends in international trade. However, operational outsourcing involves tradeoffs between client cost-savings and loss of control on the outsourced activities or functions.

Types of Outsourcing Service Providers

Some outside vendors take over major assets and resources including employees from a client company. These business process outsourcers assume full responsibility for one or more specific business processes that the client would otherwise perform.

The scope of this analysis is restricted to application service outsourcers who provide specialized functions for multiple clients.

Broadridge Financial Solutions

For example, Broadridge Financial Solutions is a full-service outsourcer that provides technological services for global financial services companies including banks and brokerage firms. Seven of the top ten broker-dealers in the United States outsource parts of their securities processing functions to Broadridge.

With over 45 years of experience and more than 4,200 employees world-wide, a specialized third-party outsourcer like Broadridge has a proven track record managing back-office processes for financial institutions around the globe.

Advantages of International Outsourcing

An international outsourcing firm can save the high maintenance costs and the specialized attention demanded by back-office operations like electronic securities transaction processing. Freed from the ongoing burden of daily back-office tasks, clients are able to focus on core competencies such as sales and new business underwriting.

According to third-party systems provider Cyber Futuristics, companies that outsource non-core operations also enjoy the following advantages.

  • Outsourcing specialists have the technological resources, expertise and mandate to invest in new technologies that would otherwise be much more costly and risky for a client company to continuously manage on its own.
  • By outsourcing to a team of technology experts, client companies access skills and training expertise not internally available while saving on human resource costs. The latter ranges from recruitment, training and performance incentives to employee group benefits.
  • Ideally, highly skilled outsourcers increase their client company’s productivity while lowering costs.

Disadvantages of International Outsourcing

One of the most publicized potential disadvantages to outsourcing is poor quality control. Case in point is last year’s melamine-laced pet food crisis, caused by a Chinese outsourcer overly focused on cost-savings.

Other disadvantages include:

  • Lengthy bid and negotiation processes to find an appropriate outsourcer.
  • Difficulty selecting the best outsourcer for specific business needs because differences among service providers are unclear.
  • Outsourcers often demand longer term contracts, which can decrease company flexibility.
  • Loss of strategic alignment with client company goals once operations are outsourced.

Within the client company, fear of losing jobs to outsourcers negatively affects employee attitudes. Employee morale and motivation falls, just as company loyalty decreases.

Ways to Mitigate Outsourcing Risks

Client companies usually have a strong understanding of their own specific industry and business environment. Therefore, outsourcing experts advise firms to only outsource non-core functions that do not directly affect the products or services that the business offers.

Companies should define exactly what business processes make sense to be outsourced to a service provider. That list of processes must then be prioritized, starting with those projects that offer the highest benefits to the company at the lowest possible cost.

An outsourcing firm must be selected based on credible referrals. The selected vendor must have experience with similar businesses, and be able to provide priority service to the client’s unique and specific needs.

Outsourcing Service Level Agreements

Finally, an effective service level agreement is key to a successful outsourcing relationship. That contract must clearly define responsibilities, performance criteria, financial incentives to meet deadlines, confidentiality rules, ownership rights to new ideas and technologies as well as outsourcing termination rights.

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