Why Outsourcing is a Success
Filed in archive Believe It or Not on November 20, 2006
Let me tell you a story:
Not so long time ago, US companies were frantic with worry about the growing financial troubles that they face alongside with the inflation of the US economy. Their worries began to fade when they discovered a new business strategy in the form of outsourcing and they lived happily ever after.
Actually, the "happily ever after" part is optional because some companies did not have that happy ending. Nevertheless, outsourcing/offshoring was viewed as the answer to the problems experienced by companies during these times.
The reason why outsourcing is (and still) a success could be put on its ability to reduce cost but at the same time, still provide the quality that companies need in their business operations. The only difference now is the way companies deal with their outsourcing deals which equates with its success rate.
Permalink: Why Outsourcing is a Success
Tags: outsourcing success business 2007 best outsourcing+success shared+services hedge+funds
Vote for Why Outsourcing is a Success:
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Rating: 8.80 out of 15 vote(s) cast.
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Response from:
Eric Williams
(01/01/07 4:55pm)
Yep, Oursourcing is definitely a success. It has succeeded in making the United States less secure. It has succeeded in sending more money out of the United States. I has succeeded in creating a record trade deficit. Yep, it has succeeded in encouraging hatred of Americans.
Response from:
Eric Williams
(01/01/07 5:09pm)
In addition, do you compile lists of how much American companies spend on outsourcing? I'm sure Americans would love to have that information before they decide to do business with those companies.
Response from:
Marie
(05/02/07 1:17pm)
Outsourcing is a success because it became a solution for most of the companies having financial troubles. But we have to take note that outsourcing is not applicable in all types of business. According to the TheFreeDictionary.com, "business segments typically outsourced include information technology, human resources, facilities and real estate management, and accounting. Many companies also outsource customer support and call center functions, manufacturing and engineering".
You can also check Tim Ferriss' blog.
http://fourhourworkweek.com/blog/
He has great ideas about outsourcing, and productivity. He's book is out now, you can take order at http://snipurl.com/1ilc1
Thanks and more power!
You can also check Tim Ferriss' blog.
http://fourhourworkweek.com/blog/
He has great ideas about outsourcing, and productivity. He's book is out now, you can take order at http://snipurl.com/1ilc1
Thanks and more power!
Response from:
Shweta
(07/30/07 10:28am)
hi,
we have posted few jobs at http://kprofessionals.com/jup/files.php
please either upload ur resume over there or mail them to resume@kprofessionals.com
thanks
shweta
www.kprofessionals.com
we have posted few jobs at http://kprofessionals.com/jup/files.php
please either upload ur resume over there or mail them to resume@kprofessionals.com
thanks
shweta
www.kprofessionals.com
Response from:
Jayesh
(01/21/08 11:37pm)
Hello,
I 've made following comments for success of Outsourcing.
•Lower costs due to economies of scale
•Ability to concentrate on core functions
•Greater flexility and ability to define the requisite service more readily
•Specific supplier benefits. For example, better security, continuity, etc.
•Higher quality service due to focus of the supplier
•Improved internal management disciplines resulting from the exercise itself
•Less dependency upon internal resources
•Control of budget
•Faster setup of the function or service
•Lower ongoing investment required in internal infrastructure
•Greater ability to control delivery dates (eg: via penalty clauses)
•Lack of internal expertise
•Increase flexibility to meet changing business conditions
I 've made following comments for success of Outsourcing.
•Lower costs due to economies of scale
•Ability to concentrate on core functions
•Greater flexility and ability to define the requisite service more readily
•Specific supplier benefits. For example, better security, continuity, etc.
•Higher quality service due to focus of the supplier
•Improved internal management disciplines resulting from the exercise itself
•Less dependency upon internal resources
•Control of budget
•Faster setup of the function or service
•Lower ongoing investment required in internal infrastructure
•Greater ability to control delivery dates (eg: via penalty clauses)
•Lack of internal expertise
•Increase flexibility to meet changing business conditions
Response from:
Ishani Mitra
(07/01/08 3:01pm)
Outsourcing by far has been the most successful practice. The far reaching impact of outsourcing has made it a raving success with large,medium as well as small sized companies. Read more at http://outsorcerer.com/blog/?p=18
Response from:
Gowri
(09/10/08 10:40am)
Interesting article and definitely a different perspective for analysis. But I feel that cost reduction is a major consideration while outsourcing. You may also visit http://www.outsorcerer.com/blog
for more news and articles on outsourcing
for more news and articles on outsourcing
Response from:
lei
(09/11/08 4:03pm)
There's definetly success in outsourcing but before you achieve that you need to set rules, implement and follow them. Yes, your right there are really many companies outsourcing now because it helps them a lot.I found this site and it's about the advantage of outsourcing http://outsorcerer.com/blog/?p=52.
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