Why is outsourcing popular

Some experts have also come to the conclusion that outsourcing is beyond cost cutting, and has become a successful business model in itself. No wonder its demand is growing by the day. Skip to content Search for:. Home Who Are We Help. What Makes Outsourcing So Popular? Greater Expertise: Whenever a business opts to outsource certain areas like marketing or accounting, the company looks for assistance from experts that have superior knowledge and experience in these fields. Effectively Controls The Cost Of Operations: One huge advantage that offshore resources have to offer, is their cost-effectiveness.

Less distraction from Core Business: Once the less important tasks are assigned to other service providers, the company does not need to fragment the attention of its personnel over so many diverse areas. Improvements in Communication Technology make it viable: Improvements in Communication Technology mean distance is no longer an issue and quality can be managed and maintained.

Ensures Reduction In Infrastructure Investments: With tasks such as voice processing and IT related projects being handled by an outsourced service provider; the company does not need to invest in expensive infrastructure for their in-house facility. Results That Can Be Measured: The best part of outsourcing is that the company that outsources can plan ahead of time its exact requirements and then hand over the responsibility to the external service provider to get it done within a given time frame.

Makes Way For Flexibility: Rolling contracts are common when it comes to outsourcing services. Useful In Surviving Seasonal Workflow: Since the majority of companies that look for offshore resources are based in developed countries, some of these companies are subjected to staff shortages because of seasonal workflow.

Gives Access To Newer Technologies: Not only does a company get access to experts when it opts for external resources, but the company also profits from the new technologies incorporated by these specialized outfits. Helps In Overcoming Talent Shortage: At times, countries face acute shortages of talent, which results in higher demand for a skilled workforce.

Freedom From Stringent Rules For In-House Employees: Most developed nations have stringent rules for management of in-house employees such as paid leave, superannuation, penalty rates, dismissal laws, and so on. After all, outsourcing has become an integral part for most successful firms just remember the after-mentioned companies that outsource , so doing it correctly and following the steps is crucial to surviving and being a successful company. Why do firms outsource project work or why do US companies outsource jobs?

Simply, to complete work, but at the same time, hopefully save money. Skip to main content. China Directory. Home Blog News Publications. Main Menu Utility Menu Search. Citation: Why Do Companies Outsource? Why Do Companies Outsource. Abstract: Outsourcing is a practice to hire a third party to complete work services. Most common ways are hiring outside of country rather than residing country. Plethora of other benefits Most businesses outsourcing their business to countries such as India stand in great benefit as they are able make complete use of the 24 hours in a day.

Medical Chronology About medical chronology Medical chronology examples Litigation support services Chronological sorting. Medical Records Retrieval. Healthcare Provider services About healthcare provider services. Customer Support. Traffic Studies. Help Desk Trend. Here's what you need to know about outsourcing, and why so many companies do it. The term "outsourcing" is often associated with companies that fire domestic employees and hire remote contractors overseas to do the same job for cheaper pay.

While that certainly does happen, it is only one example of outsourcing—and it's one of the most extreme forms of outsourcing. Outsourcing is when a company hires an outside contractor to do what an employee could. The outside contractor could be overseas, or it could be someone who lives just down the street.

Outsourced work could include everything from janitorial duties to IT help to customer service. In some cases, employees may not lose their jobs. The outsourcing could involve the transfer of employees from the original company's payroll to an outsourcing company that will handle payroll taxes, benefits, and other issues for those employees. The employees' day-to-day work won't change significantly, but their paychecks will technically come from a different entity.

Critical aspects of a successful outsourcing program include:. Of these, three aspects are particularly important for ensuring a successful outsourcing experience. Find more details on open communication, executive support, and relationship management below. Open, clear, and consistent communication is fundamental to the success of the program. Any changes that need to be made on the fly will be more successful if the contractor and company can clearly communicate about the changes.