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Archive for January, 2012

A direct answer to the question, ‘Why is outsourcing crucial to my business?’ would be:’Outsourcing is crucial to your business because it is cost-effective, increases productivity, allows you access to more talent and gives you a competitive edge over your rivals. In today’s economic climate, outsourcing has been increasingly viewed as something that is necessary to steal a march over rivals and stay afloat in wildly fluctuating financial times.

Let’s examine each of these factors one by one to see how outsourcing can positively impact your business.

1. Outsourcing is cost-effective. For years now, companies from the western countries have been eying the abundant cheap labour available in the Third World countries. The vastly uneven salary structure between the average US programmer and their Indian counterpart has tipped the scales in favour of the Indian outsourcing partner. For start-ups, in particular, employing expensive professionals can upset the finances and they may then have to settle for someone less qualified even though the job calls for a senior level executive or programmer. However, this same start-up can easily get an experienced software developer for a fraction of the salary that a US software developer would charge if it outsources.

2. Outsourcing increases productivity. The day-today running of any business is all-consuming in terms of time, energy and resources. For an individual-owned home-run business, for instance, the pressures of managing all aspects of the business can be daunting as well as time consuming. If certain non-core aspects of the business were to be outsourced to qualified experts who are trained to handle that kind of work (customer care, data entry, payroll, content writing and so on). Once crucial time is reclaimed, the business owner can then channelize that time into furthering the core business which will ultimately generate profits.

3. Outsourcing allows you easy and fast access to more talent. Let’s take the example of India. India has one of the largest workforces in the world as far as young, educated, qualified and English-speaking professionals are concerned. It is also the world leader in IT outsourcing, with Indian software developers being in huge demand by the software companies across the developed world. More than 4 million graduates come out of Indian universities every year, all proficient in the English language. It is the best solution when local talent is unavailable or is unaffordable.

4. Outsourcing gives you a competitive edge over your rivals. All the three benefits above combine to help you preserve both, your time and resources, which can then be better utilized for improving your company or organization’s core business strategy. In short, you get to concentrate on your key strengths. Outsourcing is your buffer against a financial lean time since you still get to enjoy the services of experts without blowing your budget. Additionally, when you try to do everything yourself, you are not just spreading yourself too thin, but you are in serious danger of an early burn-out. It is technically impossible to successfully handle all aspects of a business single-handedly. Let the experts – and low-cost experts at that – handle the tasks for which you may lack the skill set.

So, outsourcing is crucial for any business these days since it has proved to be cost-effective, has increased efficiency and has allowed access to talent that was hitherto out of reach.

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