Apart from the cost savings, outsourcing is seen as a strategic move that can allow businesses to gain a competitive advantage.It certainly has opened up opportunities for organizations to utilize skill sets and expertise that they normally would not be able to access without large investments.
Lower costs are perhaps the prime benefit of offshore outsourcing. You can get work done at a fraction of the cost that you would have to spend locally, while getting better quality as well. Because of the differences in pay and standard of living that exist between Asian and Western countries, labour costs are much lower in Asia.
Because of the time zone difference between Asian countries and the West, you can get your work done. This is especially beneficial for companies in the service industry that need to provide round-the-clock customer support.
Outsourcing not only brings cost advantages but can also improve the efficiency of business operations. Outsourcing providers with the right expertise and experience can actually help streamline business processes and contribute to the bottom-line.
When certain functions are outsourced, companies also distribute or do away with the risks associated with running that particular function.
Customer service is paramount to any organization. Through outsourcing you can service your customers faster, provide better quality and decrease turnaround time.
Since outsourcing takes care of the skills necessary to run a particular business process, your business is much more flexible in investing in key resources, can focus on getting resources to grow your core competencies.
To make any decisions, define the impacts of outsourcing before and if the outsourcing disadvantages outweigh the advantages of outsourcing, then should avoid outsourcing those operations.
Anything not covered in the contract will be the basis for company to pay additional charges. There is a risk that the confidentiality...