Advantages of Outsourcing

To a layman, outsourcing would seem like a waste of time and money, as well as an unneeded complication. After all, why send business abroad when the work can probably be done better right at home? To a politician, the issue of outsourcing serves as a fortified objection to taking jobs away from ‘our own countrymen’. Sympathy towards this issue may elicit a few votes, but nothing more.

But to a businessman, outsourcing is a modern day boon. Outsourcing grants businesses the freedom to dump non –core, yet important sectors of its administration on companies specializing in those very individual aspects.

Thus, leaving the businessman free to wholly concentrate on those areas of the company that bring in the real moolah.

The most enticing advantage of outsourcing is the cost effective factor. Human resource and IT services in the United States or Europe are not exactly inexpensive. Let’s avoid complicated business jargon and say that outsourcing is basically an option that offers these services at a much, much lower rate i.e., a cheap but highly productive mass work force. Let us take India as an exemplary illustration.

Thousands of highly intelligent people graduate in a variety of fields each year. Almost all of them speak English better than the English, and have dreams of making big money in a short period of time. The boom of BPO’s in the last 10 years has given them a chance to realize those dreams.

It provides them with the opportunity to stay close to home and earn almost as much as they would if they took up a job abroad. On an average, an individual would earn $ 300 to $ 500 per month. A small sum to an American, but an Indian would be quite happy with that salary considering the conversion rate. It’s a win – win situation for your business as well as the company you’re outsourcing to.

There is no dearth of candidates willing to suffer incessant night shifts. Due to a constant effort of having to prove themselves, you can be assured of enhanced quality and productivity at all times. The company you outsource to will always be sure to reach your targets, deliver on time, ensure stringent security and maintain a level of productivity which won’t tempt you into taking your business elsewhere.

Employees are regularly evaluated and terminated if found wanting in any aspect. The entire process of recruitment and the hassles involved with finding (and sustaining) the right person for the job is taken off your shoulders.

By 2006, in addition to human resources and IT services, companies that take on offshore contracts will also offer tax preparation and back office services. Hundreds of commerce students graduate in India each year and go on to become chartered accountants in a country where there is no dearth of them. Offering these services to countries abroad would be lucrative for both parties. The most advanced security procedures will be employed in this regard.

It all comes down to the money. Let’s face it; we live in a material world. And the technical term for material is moolah. So until the day the cons of outsourcing outweigh the monetary factors (read pros), outsourcing; as a legitimate and lucrative way to do business, is here to stay.

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