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Outsource for Productivity and Cost-Effective Operations

Aug 17, 2007
Does outsourcing works for your advantage or disadvantage?

For a layman (or an individual who grasps the concept of outsourcing at a sea-level understanding), outsourcing is a complete waste of time and financial resources, which can end up with unwanted complications.

Why assign work to other individuals if you know what will be good for your business? Why delegate the work to outsourcing professionals abroad if you can do much better right at your own territory? You know what is best for your business, and you don't need other individuals to deal with things that you can handle by yourself, or with the help of in-house personnel.

For a politician, outsourcing will just be a political subject that can be argued in debates within the walls of Congress and newspapers. The issue will serve as a "fortified objection" to take away jobs from your own countrymen, making your business "unpatriotic." Politicians' sympathies with regards to the outsourcing issue may win him a few votes in the upcoming election, nothing more than that.

However, it is the businessman who will be using the outsourcing process; not the layman, and definitely, not the politician. Thus, outsourcing for businessman is a "modern day boon."

Many businessmen are aware that outsourcing provides them the freedom of dumping all of their non-core yet important aspects of their business and delegating the work to an individual or group of individuals who can give justice to the process.

Thus, it will leave businessmen free from additional responsibilities and focus instead on the core of their business. On the other hand, the outsourcing firm can also focus on the specific work delegated to them, thus it is a cost-efficient business operation. That is one of the primary advantages of outsourcing.

Another enticing advantage of outsourcing is being one of the cost-effective measures that you can take for your business. Businessmen are aware that information technology (IT) services and human resource in United States or in Europe are expensive, which can affect the way they hire additional manpower in case of business expansion.

Outsourcing provides an option in getting highly-productive manpower in a cheaper rate. For instance, offshore outsourcing (delegating the work to off-shore destinations such as India and Philippines) is popular to U.S.-based businesses because of the cheap working rate.

An ordinary American who will earn an average of $300 to $500 per month is just a small sum, but for Indians and Filipinos, they would be quite happy with this salary range considering the currency conversion rate. Thus, this is a "win-win" solution for the company you are outsourcing to as well as for your business.

Another convincing advantage of outsourcing is saving substantial amounts of money in terms of the development of some aspects of your business (such as IT development). Since outsourcing involves reduced expenditures on your part, you will be able to maximize the value of your money to have your IT services developed into the latest and most powerful modern information tool.

In addition, you will avoid recruiting new personnel who will handle the development as well as training them, thus reducing the recruitment and training cost for your business. The purchase of necessary technology will now be handled by the outsourcing company, thus saving money in the long run which you can use on other important business aspect.

There are other advantages of outsourcing, yet the aforementioned advantages are the most noted ones. Do not be misled by rumors and gossips about outsourcing. You are the business owner and you know what is good for your business.
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