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Outsourcing Services- Why Outsource to India

Posted On : Jul-13-2011 | seen (151) times | Article Word Count : 651 |

Outsourcing is contracting with another company or person to do a particular type of function. Every organization outsources in some way.Function being outsourced is considered non-core to the business.
Outsourcing is contracting with another company or person to do a particular type of function. Every organization outsources in some way.Function being outsourced is considered non-core to the business.

For example, an insurance company might outsource its janitorial and landscaping operations to firm that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third party providers, or as they are more commonly called, service providers.

Currently, outsourcing takes many forms. Organization still hire service provider to handle distinct business processes, such as benefits management. But some organization outsource whole operations. The most common form are information Technology outsourcing (ITO) and business process outsourcing (BPO).

Business process outsourcing encompasses call center outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing.
These outsourcing deals involve multi-year contracts that can run into hundreds of millions of dollars. Frequently,the people performing the work internally for the client firm are transferred and become employees for the service provider.

The process of outsourcing generally of four stages :-
1. Strategic Thinking, to develop the organization's philosophy about the role of outsourcing in its activities.
2. Evaluation and selection, to decide on the appropriate outsourcing projects and potential locations for the work to be done and service providers to do it.
3. Contract development, to work out the legal, pricing and service level agreement terms.
4. Out sourcing management or governance, to refine the ongoing working relationship between the client and outsourcing service providers.

Outsourcing is contracting with another company or person to do a particular type of function. Every organization outsources in some way.Function being outsourced is considered non-core to the business.

For example, an insurance company might outsource its janitorial and landscaping
operations to firm that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third party providers, or as they are more commonly called, service providers.

Currently, outsourcing takes many forms. Organization still hire service provider to handledistinct business processes, such as benefits management. But some organization outsource whole operations. The most common form are information Technology outsourcing (ITO)and business process outsourcing (BPO).

Business process outsourcing encompasses call center outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing.These outsourcing deals involve multi-year contracts that can run into hundreds of millions of dollars. Frequently, the people performing the work internally for the client firm are transferred and become employees for the service provider.


Why Outsource to india :-
Outsourcing has almost become the order of the day. More and more global organizations are choosing Indian outsourcing companies today for a number of reasons, such as cost-effective services, increased efficiency, increased productivity, shared risks, reduced operating costs, increased quality, better services and more time to focus on core competencies. These are the reasons why organizations are outsourcing today. But India is the most ideal place to outsource to, because India offers several advantages.

India provides a range of outsourcing services to countries across the globe. Outsourcing to India can help your organization benefit from cost-effective services, high-quality services,reduced operating costs, greater flexibility and faster - time -to-market amongst others.Another reason why outsourcing to India makes good business is because India has high-end technology and best-of-breed infrastructure. India has now become the world's most preferred outsourcing location. India is also the global hub for software enabled services and software development.

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Keywords : Outsourcing, Outsourcing Services, IT Service Outsourcing,

Category : Business : Business

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