Outsourcing – outsourcing is contract where obtaining goods or service from other company that were performed by the company’s own employees and staff for cutting of cost. Outsourcing lower the labour costs and avoid expenses associated with overhead, equipment and technology. Because of outsourcing company can focus on core aspects of business. This leads to faster turnover times, increased competitiveness within an industry and this cuts overall operational costs. There are two types of outsourcing. They are-
1) Onshore outsourcing/ Domestic outsourcing- the contract with the other company or freelancers within the country. Reasons to choose onshore outsourcing are:-
2) There will be easy communication and it’s very easy to communicate at the time of emergency. When it comes to functions like sales, customer support or
3) There will be good level of control, responsiveness and reliability over the activities that are outsourced.
4) There will be fewer cultural differences, where need not to worry about holidays.
5) When it is onshore outsourcing you will know that the people working have appropriate skill sets and knowledge about the activities that has outsourced.
6) The one to whom you have outsourced the work will know your market so they understand your clients and their needs
7) Protecting your intellectual property and ensuring that your company has a reputation for honest dealings with regard to others’ intellectual property will be a priority for you.
8) Onshore outsourcing helps to lower the cost price of the product. And saves cost in terms of travelling expenses
9) There will be political stability and financial stability, political and economic will be stable because of same political factors.
10) Creating local jobs certainly earns you goodwill, and it’s more than just a political issue
11) It is easy to track outsourced work because you can always call or drop by the office
12) Offshore outsourcing/international outsourcing – moving work to the distant country or hiring external organisation to perform some of the activities that are not the core products/subject of company. Advantage of offshore outsourcing are:-
13) You get the best that world has. Where you can get best service and products
14) Labour cost varies so you can get best service for less.
15) If you want to give service around the clock then offshore outsourcing works for you