Reducing Cost in Outsourcing
As mentioned before in this blog (and probably on other outsourcing blogs), cost-cutting is the main reason why most companies outsource. The issue here is finding out that instead of achieving their goals, most companies end up being on the other side of the road.
reducing costs is the reason why most companies outsource because they want to save money due to high-rising rates nowadays. The reason why companies do not achieve this said goal is because of one thing: unplanned outsourcing.
Here are some tips which could help companies in avoiding the "financial drain" when outsourcing:
- Be sure to determine the appropriate portion of the outsourcing "market basket" which are more prone to inflation/deflation
-Select the appropriate index
-Build a conservative and flexible approach into your outsourcing contract.
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I am a part of a legal outsourcing company called Kaizen Process Outsourcing (www.kpo.net.in). As per my experiece there is more to offhshoring than just cost saving. For Kaizen and our clients cost savings are only a part of the total offshoring strategy, it all about getting the work done with improved effencies and in a faster manner taking advantage of the time zones.
Comment by Deepak Malik on November 7, 2006 2:44 am