Benefits of outsourcing Essay
Benefits of outsourcing
There are many benefits of outsourcing. One of the most important advantages is the cost which results in providing lower cost services to the American public. It is true that the salaries are substantially low compared to what they get in US but it is also true that the ratio of cost of living to the salaries is almost the same in US as well as the outsourced countries. The second advantage is the time factor. Let’s take an example of financial analyst or a programmer.
A programmer at the other end of the world can continue the work of his US partner or a financial analyst in India can analyze the US market and make the report ready for the next day. The third advantage is the knowledge base. Countries like India have a large pool of skilled workers and hence technical jobs can be well handled by them. By employing skilled manpower in larger numbers at lower costs companies can really increase their productivity with specialized processes and technology that ensure better quality of output for the customer. This in turn would result in better customer satisfaction and increased profitability.
The fourth advantage is the language. India has one of the largest English speaking populations in the world. This makes communication process easy between the two sides. In a recent Accenture survey of more than 800 health, manufacturing, retail and travel executives in the US and Europe, 86% said outsourcing gives them more control over business results in a variety of critical areas, the most important being the ability to plan. It allows firms in US to concentrate more on its core business. Reference: Dan Miller. Training and Development: Fertile Ground for BPO. IDC, May 2003.