The most obvious and visible benefit relates to the cost savings that outsourcing brings about. You can get your job done at a lower cost and at better quality as well. Due to the difference in wages between western countries and Asia, the same kind of work that is done over there can be done in India at a fraction of the cost. There is a cost savings of around 60% by outsourcing your work to India. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality.
There are many reasons why a company may choose to outsource certain business functions. Some of the most common reasons include:
- Reducing and controlling operating costs (the largest driver)
- Improving company focus
- Gaining access to world-class capabilities
- Freeing internal resources for other purposes
- Streamlining or increasing efficiency for time-consuming functions
- Maximizing use of external resources
- Sharing risks with a partner company
But these reasons aren’t enough to implement a successful outsourcing program. In fact, companies must ensure they consider every component and are able to meet the requirements for successful outsourcing.