Friday, October 14, 2005

Why executives prefer to outsource???

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. While cost-cutting is among these key areas, the executives also reported equal levels of control in reliability, cost variability improvements and effective implementation of ideas.
Information technology is the most common at 43%, followed by supply chain (36%), learning/training (31%), human resources (25%), finance and accounting (21%) and customer relationship management (13%).
Here are some of the reasons why outsourcing is a better choice for managing the IT department, rather than maintaining IT internally.
Outsourced services are utilized as needed, and organizations pay only for what services are actually used
An outsourced IT department can reduce costs by utilizing its extensive knowledge base of various IT specialists, as opposed to an organization maintaining a comprehensive in-house staff
Outsourced companies make performance reports and measurements available to their clients
Outsourced companies can provide 24x7 support at a fraction of the cost
Staffing levels can be adapted quickly to client requirements, thereby avoiding gaps due to attrition, business growth or economic downturns
IT consultants are fully trained on the latest technologies
Outsourced services use established standards for equipment and software requirements, saving time and money
Client management can concentrate on core competencies and revenue generating activities, while leaving technology management to IT professionals

The article sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.