Why Outsourcing is a Success

Why Outsourcing is a Success

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.


8 Comments

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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.


Comment by Eric Williams on January 1, 2007 5:55 pm


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.


Comment by Eric Williams on January 1, 2007 6:09 pm


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!


Comment by Marie on May 2, 2007 2:17 pm


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Comment by Shweta on July 30, 2007 11:28 am


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


Comment by Jayesh on January 22, 2008 12:37 am


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


Comment by Ishani Mitra on July 1, 2008 4:01 pm


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


Comment by Gowri on September 10, 2008 11:40 am


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.


Comment by lei on September 11, 2008 5:03 pm


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