Friday, May 07, 2004

The Five W's of Outsourcing

Who should outsource?

Just about everybody: from entrepreneurs in the SOHO (small office home office) segment to small and medium enterprises (SME), to large businesses and empires with diversified interests and varied business processes. Every business benefits hugely through outsourcing because technology is changing so fast, it has to be leveraged and used to the maximum to deliver competitive advantage to a company.

"I view outsourcing as part of the transformation strategy" Pat Wallington Xerox.

Why should I outsource?

Experts believe that outsourcing is essential for companies to prosper throughout the '90s and into the 21st century.

Outsourcing gives you:

1.A technical and functional edge on the competition -- without capital investment.
2.Faster development and start up
3.Lower cost
4.Enhanced performance
5.A better-managed e-business infrastructure
8.Maximizes uptime
9.A more effective operating environment at the backend. More…(link to article)
10.What should I outsource?

We will confine our suggestions to IT and IT-enabled tasks, products and services. But as the world runs on technology, the list is long:

1.Web solutions
2.Web development
3.Web design
4.Website security
5.Website maintenance
6.Web hostinge-commerce: B2B, B2C and C2B
7.Transaction management
and more...

Business process outsourcing (BPO)

1.e-CRM (electronic Customer Relationship Management)
2.SCM (Supply Chain Management)
3.Back Office
7.Telemarketing and Call Centers
8.Teleservicing and Product Support
and more…

When should I outsource?

When you're losing focus on your core business because you're too busy handling operations
When you're facing a time, money and human resource crunch
When you have a mission-critical project that needs all your time and energy, plus specialized skills which aren't readily available
When you've got to be the first into the market to gain the edge

Where should I outsource?
Try India! Intel, IBM, Cisco, Yahoo, Amazon and Oracle find it works! Read more about what others are doing.

Yes, but WHERE in India should I outsource?

Start with Bangalore, India's Silicon Valley. is strategically positioned in Bangalore and will put you in touch with the right outsourcing partners.

According to Dun & Bradstreet's most recent Barometer of Global Outsourcing, outsourcing expenditures will top $1 trillion worldwide by year end 2000. These expenditures have doubled in just the past three years alone. North America leads in outsourcing spending, representing 39 percent of the global total, followed by Asia at 31 percent and Europe at 25 percent.

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