Can Outsourcing Improve Your Bottomline?

Outsourcing can and does improve your bottomline. Here's how -- Want to make your clients happier with better service? In a mood to manage the database in the best possible way with minimum efforts? Unsatisfied with your accounts department? Are the internal resources too costly as compared to their benefits? Looking for a common solution to all the administrative problems?

Don't worry. Millions around the globe are looking for ONE answer to all these questions. And the answer is OUTSOURCING.

Many companies, like IBM, outsource much of their production to Taiwanese firms. Telecom service providers outsource their ‘Customer Care’ service. Banks outsource marketing duties.

So why can't you?

Outsourcing to India creates strategic value by creatively examining the process and changing the way it is performed. The service provider undertakes the responsibility to take over the function and re-engineers the way of doing it. This can be either in the form of applying a new technology or applying the existing technology in a new way.

Companies are taking advantage of outsourcing services to serve their clients quicker and better. According to the Outsourcing Index 2002 by Outsourcing Institute, USA, some of the reasons behind outsourcing are as follows:

Next question that may come in your mind is "What are the things that can be outsourced?"

There are many processes that one can outsource. This ranges from hiring companies to make widgets faster to processing insurance or medical claims faster and efficiently to running a company's accounts payable and pensions.

According to a published report, the outsourcing market is estimated at $180 billion, and is expected to grow by 10% to 12% over the next five years.

According to the Fifth Annual Outsourcing Index the top ten non-revenue generating tasks that are being outsourced are as follows:

  • Information Technology
  • Administration
  • Distribution and logistics
  • Finance
  • Human Resource
  • Manufacturing
  • Contact Centers/Call Centers
  • Sales/Marketing
  • Real Estate Estate/Facilities Management
  • Transportation

See also "Seven Steps to Successful Outsourcing by Keith Pallesen", "Factors for Successful Outsourcing" and "Important Factors in Vendor Selection" before proceding further.


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