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Outsourcing - the Competition Killer

Aug 17, 2007
Outsourcing has caught the imagination of many companies mainly on account of rising cost of production, ever increasing labor cost, taxes and other expenses. As the Asian Tigers ( the booming economies) are standing up to be recognized as successes, the European and US companies have started outsourcing their jobs and processes to these nations, essentially to cut costs.

It's a dog-eat-dog world in many industries and it is imperative that companies outsource their labor and time intensive jobs to outside providers so that they can focus on their core functions. Such companies can pursue expansion through takeovers, mergers and drive their marketing efforts better when their routine tasks are handled through outsourcing.

Finding the right outsourcing partner is key to the success of any business. A successful outsourcing company should have well-qualified staff with adequate experience in delivering results for overseas projects. They should be able to work with little supervision and of course always deliver on time, while optimizing the costs.

Reliability is the prime qualification of any outsourcing provider. They should strike a balance between quality service and price. Any undue increase in pricing will impact the client organization adversely. The outsourcing provider should be able to maintain their price levels for a significant duration, which will give the advantage to their clients. This will be the single most important factor in the success of any company providing outsourcing services and effectively kill their competition in its infancy!

"A dollar saved is a dollar earned", this dictum is very valid for outsourcing providers, because it enables them to cut their costs. Such reduction in costs means additional profits. Any company looking for outsourcing providers must check the latter's history for such achievements in cost reduction and other efforts at maximizing profits.

Achievement of the following points can make an outsourcing company a proven competition killer.

a. A suitable infrastructure
b. Well qualified work force with experience tailored to the job.
c. Quality certifications like ISO 9000
d. Track record of keeping trade secrets
e. And finally an established track record of success stories.

When an outsourcing provider achieves the above points it is sure to retain its pole position in the fiercely competitive Grandprix of outsourcing track. This is simply the best way an outsourcing company can get ahead of the pack in the highly competitive job outsourcing industry. When it comes to job outsourcing, strategy can be the difference between success and failure.
About the Author
MJ Batta writes job outsourcing related topics and hosts a job outsourcing research site at Outsourcing America and a special outsourcing report at How Companies Outsource
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