Outsourcing is one of the new business trends in the global economy regarding what it includes of business benefits. Outsourcing is simply transferring the business management and daily implementation of the business function to an external reliable service provider who is responsible to provide the client with the reliable people, assets, technology, and other required business resources for the business. Outsourcing is the natural result of globalization era the world is experiencing where the whole world become inter-united regarding the business scope.
Outsourcing services is typically used in the following business segments; information technology, Human Resources, accounting, and Real estate management. In Brief words, outsourcing is requested in business demanding tasks such as, customer services, telemarketing, web development, designing, market research, manufacturing, and engineering services.
As we are focusing in Bit&Bits on the information technology outsourcing sector;
It all takes place when organizations select intermediate reliable markets to provide them with business services that are cost efficient and quality assured. There are a great number of benefits for outsourcing that encouraged a great amount of multinational business to take advantage of outsourcing. Some of these benefits are highlighted as:
- Cost efficient. With the current economic global situation, the lowering of the overall cost of the business is an essential issue. This type of outsourcing is typically referred to as “labor arbitrage” where organizations seek lower cost economies for services implementations. Pricing is considered as the main player in the outsourcing game; where business are seeking to lowering their overhead costs and liabilities by seeking to intermediate economies offering the same service implementation with lower salaries. to intermediate economies results in lower the cost of salaries
- Access to talent. Talents have no borders. Outsourcing for talents can give the business a new leap in production. This benefit enables the organization to seek new blood of experience, ideas, and creativity. Outsourcing give the organization the access for a large talent and skills pool.
- Quality improvement. Outsourcing usually takes place toward intermediate economies which main concern is to improve their economical global level. Quality assurance is one of the points they have to guarantee to sustain their clients. Why not take advantage of this step of change?
- Risk management. Outsourcing help decreasing the organization’s risk taking regarding office provided, the equipments needed, and the employees requested. All of the business essentials for the services implementations are provided and managed by the supplier.
- Knowledge Providing. This benefit of outsourcing is typically resulted in cases Research & Development where it provides the organizations with information, wider experience, and knowledge regarding certain economy or country.
- Scalability. Usually the outsourced company is prepared to manage a temporary or permanent increase or decrease in production. Taking advantage for being able to modify the deal specifications, for example, increasing or decreasing the amount of employees regarding the business needs.