Out sourcing

The offshore outsourcing industry has exploded in the last few years. According to Forbes, it is the most significant business practice in the past year. Cost reduction and the availability of talented resources have made several global companies flock to offshore locations like India. There has been an evolution in offshore outsourcing as back office processes are no longer the only kind of work outsourced. Now, more core processes and specialized services are being outsourced to India as recognition of the expertise and skills available is growing. One should understand the need for offshore outsourcing better before making a decision. Cost is definitely one of the main reasons for offshore outsourcing, but one should realize that this cost advantage may not be seen immediately. Initial investment in infrastructure, training, and other such preliminaries may make one believe that the cost advantage promised is just the illusory pot of gold on the other side of the rainbow. The cost advantage is seen over a period of time in an outsourcing venture, which involves a committed relationship and understanding between both parties involved. So the aspect of saving money does exist, but one has to realize that initial investment may make the promise of cost reduction seem false. There will be savings and along with these savings there is great value addition. Most who outsource only realize the quality and value addition after the offshore outsourcing relationship begins. This is not usually the primary goal when deciding to outsource, and the creativity and talent in India comes as a surprise to many. The shift in motivation is already apparent. The fact that so many companies continue to outsource is proof of this. Along with the sheer volume of work that is pouring comes recognition of the talent and expertise possessed. Offshore outsourcing involves a great deal of thought. One should not be spurred simply by expectations of rapid cost reduction. The new wave of offshore outsourcing to India is about quality solutions. When processes are off shored to India, companies not only get the advantage of low cost but also experience improvement in productivity and quality.

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