Outsourcing is an established way of doing business today, allowing companies to maximize their budgets and resources — and generate better products.
Also referred to as subcontracting, outsourcing simply means acquiring a product or service rather than producing it in-house. Outsourcing is suitable for just about any industry. In the administrative field, for instance, a variety of activities can easily be farmed out to a subcontractor, including word processing, data entry, transcribing, research, contact management and event planning.
Outsourcing is extremely common practice within human resource (HR) departments. In fact, two-thirds of HR departments outsource at least one activity, according to research by the Bureau of National Affairs, Inc. and the Society for Human Resource Management. The top five outsourced HR activities are employee assistance/counseling, flexible spending account administration, pre-retirement counseling, outplacement services and pension/retirement plan administration.
Benefits of Outsourcing
Many companies that choose to outsource do so because they don’t have or can’t attract the people skills they need. Subcontracting gives them access to a much greater pool of resources. It also enables companies to cut cost by 10 to 30 percent, depending on the industry. They can purchase services on an as-needed basis, instead of maintaining a full-time employee. This allows them to avoid paying employee-related expenses such as salaries, unemployment taxes, paid vacation and sick leave, insurance — which results in a lower overhead.
In another aspect, Outsourcing can help a company focus on its core business, creating a competitive advantage within its industry. Subcontracting also affords the business the chance to get the best job possible from the people it hires. By using a third party supplier, a company has more room to be critical of the kind of services provided. If the work is done in-house, company ties may interfere with the final product.
Outsourcing also offers a wide variety of other benefits, including:
• Faster setup of the function or service
• Acquire innovative ideas
• Increase commitment and energy in non-core areas
• Improve credibility and image by associating with superior providers
• Greater flexibility and ability to define the requisite service more readily
• Less dependency upon internal resources
• Greater control of budget
• Greater ability to control delivery dates
• Increase flexibility to meet changing business conditions
• Purchase of industry best practice
• Generate cash by transferring assets to the provider
• Gain market access and business opportunities through the supplier’s network
• Turn fixed costs into variable costs
For details read here
Tuesday, November 21, 2006
Monday, November 20, 2006
India Offshore Outsourcing
American and English have always turned to India as a primary Outsourcing country. India is a developing nation, but it surpasses all countries but America when it comes to the number of scientifically minded English-speaking individuals. Since India has yet to be labeled developed, the immense talent it holds is available for outsourcing at very cheap rates -- about 50% of what an employee in the US or UK would demand.
Since the 1960s, India has been under the consideration of European and American companies. Previously, the prime reason for choosing Indian companies for sub-contracting was that Indian manpower was available for at much lower rates than its indigenous counterparts. This brought the overhead expenses down dramatically for the parent company.
Indian companies recruit special coaches and trainers to make their employees adept in western modes of life to become more palatable to their clientele. There are quality supervisions and time-bound projects to make their employees more proficient.
BPOs in India work in two shifts – day and night. The night shift makes better business sense to the Americans and Europeans, as they become prime time workers in their own countries. However, they are paid half the amount of what an American or European employee would be paid.
Of late, offshore companies have mushroomed in all the metropolises of India including Chandigarh, Mumbai, Delhi, Chennai, Kolkata and Bangalore. Call centers are considered to be a highly reputable profession for urban youth, who consider this job a channel to western advanced countries. In fact, the salaries from Outsourcing companies form a major chunk of the income earned by the youth in Indian cities.
For more information please click here
Since the 1960s, India has been under the consideration of European and American companies. Previously, the prime reason for choosing Indian companies for sub-contracting was that Indian manpower was available for at much lower rates than its indigenous counterparts. This brought the overhead expenses down dramatically for the parent company.
Indian companies recruit special coaches and trainers to make their employees adept in western modes of life to become more palatable to their clientele. There are quality supervisions and time-bound projects to make their employees more proficient.
BPOs in India work in two shifts – day and night. The night shift makes better business sense to the Americans and Europeans, as they become prime time workers in their own countries. However, they are paid half the amount of what an American or European employee would be paid.
Of late, offshore companies have mushroomed in all the metropolises of India including Chandigarh, Mumbai, Delhi, Chennai, Kolkata and Bangalore. Call centers are considered to be a highly reputable profession for urban youth, who consider this job a channel to western advanced countries. In fact, the salaries from Outsourcing companies form a major chunk of the income earned by the youth in Indian cities.
For more information please click here
Friday, November 17, 2006
Tips To Make an Outsourcing Project Successful
The origin of Outsourcing
The concept of outsourcing originated with Ross Perot when he established Electronic Data Systems in the year1962. EDS convey the following message to their potential clients,
“You are familiar with designing, manufacturing and selling furniture, but we're familiar with managing information technology. We can sell you the information technology you need, and you pay us monthly for the service with a minimum commitment of two to ten years.”
Basic Elements of BPO
Outsourcing in the present times is termed as a “strategic management option” instead of a way just used to cut costs. It enables an organization or company to attain its business objectives through applying factors such as operational excellence and an edge in the market place. Today, there not a single company exists which does have one or more of its services outsourced so that it can pay more attention to its core competencies. The power of outsourcing as a significant business tool of unique versatility and flexibility is undoubted. The main reason why most of the companies employ the strategy of outsourcing is that their resources need to be more focused on core business functions and consequently the non-core functions need to be outsourced. Outsourcing is the fundamental process that provides a company with the right combination of people, processes and technology to operate effectively in the Global market place without burdening its time and budget. This is the most crucial reason for the increase in the number of companies who are interested in outsourcing their activities to various offshore locations. There are two key factors that should be observed while looking for a reliable outsourcing provider, they are:
-Quality
-Price
Tips to Make an Outsourcing Project Successful
The results of outsourcing if seen as a whole have both been positive and negative for organizations. There results depend on the important factors such as:
-How the contract between the outsourcer and vendor is structured
-The efficient management of the customer and vendor relationship
-The measurement of the end results
If all the above points are kept in view while deciding to outsource, outsourcing can prove to be fruitful for both the outsourcers their potential customers. Industrialists and business men are always in search for methods to accomplish their business objectives by investing less amount of money. For such people, a best solution is to outsource their work to skilled but cost-effective third party service providers. To make outsourcing projects successful the following tips should be followed:
-Conduct a thorough research to find the best Vendor for the project
The easiest way to find outsourcing companies is to try search engines or relative online directories. But there lies a possibility that cheaters would also be there. Hours should be spent while conducting extensive research to find the best vendor.
-The scope and the schedule for the project should be clearly defined
The scope and schedule for the project should be clearly identified in order to avoid any misconceptions regarding the deadline and limits of the project which would have a negative impact on the successful and timely completion of the project. The requirements of the project should be defined without any ambiguities by the outsourcer. The service providers require accurate, complete information to present the outsourcer with realistic proposals and to quote a reasonable price. The outsourcer must be precise regarding the deliverables the outsourcer expects the vendor to provide. The vendors must be provided complete information about what exactly the outsourcer wants to be delivered with and the method in which the outsourcer requires to be followed while doing the work. The outsourcer should clearly state the schedule of the project as it could have a great influence on the project cost.
-Search for specific experience
In normal situations the service provider selected by the outsourcer will posses specific expertise similar to the type of the project the outsourcer is undertaking. For instance, if an outsourcer requires a business plan for opening a retail store, the best results can be obtained if the vendor hired would have certified experience in the same sector.
-The Selection of the Vendor must be not be based only on the factor of price
Low price seems to tempt to select a certain vendor but this method should not be adopted for selection. The buyers who have gone through the experience of Outsourcing many projects and evaluating hundreds of proposals almost always support that the highest-priced and lowest-priced bid consideration for selecting a vendor should be not be given importance at all.
-Begin with a Small project
When working with a new vendor for the first time the outsourcer should begin with a relatively small project. This would be beneficial in terms of providing the outsourcer with a view of the vendor’s capabilities.
-Converse about the ownership of the end work or result
The outsourcer and vendor should negotiate clearly over the ownership of the end result, work or product and its components.
For more information Please click here
The concept of outsourcing originated with Ross Perot when he established Electronic Data Systems in the year1962. EDS convey the following message to their potential clients,
“You are familiar with designing, manufacturing and selling furniture, but we're familiar with managing information technology. We can sell you the information technology you need, and you pay us monthly for the service with a minimum commitment of two to ten years.”
Basic Elements of BPO
Outsourcing in the present times is termed as a “strategic management option” instead of a way just used to cut costs. It enables an organization or company to attain its business objectives through applying factors such as operational excellence and an edge in the market place. Today, there not a single company exists which does have one or more of its services outsourced so that it can pay more attention to its core competencies. The power of outsourcing as a significant business tool of unique versatility and flexibility is undoubted. The main reason why most of the companies employ the strategy of outsourcing is that their resources need to be more focused on core business functions and consequently the non-core functions need to be outsourced. Outsourcing is the fundamental process that provides a company with the right combination of people, processes and technology to operate effectively in the Global market place without burdening its time and budget. This is the most crucial reason for the increase in the number of companies who are interested in outsourcing their activities to various offshore locations. There are two key factors that should be observed while looking for a reliable outsourcing provider, they are:
-Quality
-Price
Tips to Make an Outsourcing Project Successful
The results of outsourcing if seen as a whole have both been positive and negative for organizations. There results depend on the important factors such as:
-How the contract between the outsourcer and vendor is structured
-The efficient management of the customer and vendor relationship
-The measurement of the end results
If all the above points are kept in view while deciding to outsource, outsourcing can prove to be fruitful for both the outsourcers their potential customers. Industrialists and business men are always in search for methods to accomplish their business objectives by investing less amount of money. For such people, a best solution is to outsource their work to skilled but cost-effective third party service providers. To make outsourcing projects successful the following tips should be followed:
-Conduct a thorough research to find the best Vendor for the project
The easiest way to find outsourcing companies is to try search engines or relative online directories. But there lies a possibility that cheaters would also be there. Hours should be spent while conducting extensive research to find the best vendor.
-The scope and the schedule for the project should be clearly defined
The scope and schedule for the project should be clearly identified in order to avoid any misconceptions regarding the deadline and limits of the project which would have a negative impact on the successful and timely completion of the project. The requirements of the project should be defined without any ambiguities by the outsourcer. The service providers require accurate, complete information to present the outsourcer with realistic proposals and to quote a reasonable price. The outsourcer must be precise regarding the deliverables the outsourcer expects the vendor to provide. The vendors must be provided complete information about what exactly the outsourcer wants to be delivered with and the method in which the outsourcer requires to be followed while doing the work. The outsourcer should clearly state the schedule of the project as it could have a great influence on the project cost.
-Search for specific experience
In normal situations the service provider selected by the outsourcer will posses specific expertise similar to the type of the project the outsourcer is undertaking. For instance, if an outsourcer requires a business plan for opening a retail store, the best results can be obtained if the vendor hired would have certified experience in the same sector.
-The Selection of the Vendor must be not be based only on the factor of price
Low price seems to tempt to select a certain vendor but this method should not be adopted for selection. The buyers who have gone through the experience of Outsourcing many projects and evaluating hundreds of proposals almost always support that the highest-priced and lowest-priced bid consideration for selecting a vendor should be not be given importance at all.
-Begin with a Small project
When working with a new vendor for the first time the outsourcer should begin with a relatively small project. This would be beneficial in terms of providing the outsourcer with a view of the vendor’s capabilities.
-Converse about the ownership of the end work or result
The outsourcer and vendor should negotiate clearly over the ownership of the end result, work or product and its components.
For more information Please click here
Wednesday, November 15, 2006
India a Global Platform for Knowledge Outsourcing
Outsourcing is not new for the country like India. It was started dates back during 1960s. Business Process Outsourcing (BPO) is the long-term contracting out of non-core business processes to an outside provider to help achieve increased shareholder value. BPO saves precious management time and resources and allows focus while building upon core competencies. After BPO, India has now set its sights on becoming a global hub for knowledge process outsourcing (KPO). Knowledge Process Outsourcing (KPO), a new terminology is evolved for the business related to the patents and intellectual property.
As India has the second largest English speaking scientific manpower pool in the world after the U.S. most of the Global competitors are looking forward to India to outsource their IPR needs related to patent searching, prior art search, infringement and validity search etc,. In a survey it was found that Indian graduates cost 50%+ lower than the U.S. and initial setup cost are half those in U.S. According to the Rick Wills, CEO, of Tektronix Inc.
"In India, free-market reforms are creating the world's largest back office, transforming the country into a major force in IT, Outsourcing, and critical service application delivery."
Confederation of Indian Industry (CII) study saying that KPO would grow at 46 per cent to become $17 billion sector by 2010. The BPO industry, only 26%. Global KPO pie in 2010 will be around $17 billion of which $12 billion (70%) will be outsourced to India.” Thus KPO is going to be global hub for the country like India. Areas with significant potential for KPO include pharmaceuticals, biotechnology, and ICT, besides legal support, intellectual property research and design and development for automotive and aerospace industries, CII stated.
KPO involves high-end processes like valuation research, investment research, patent filing, legal and insurance claims processing, patents and prior-art search, etc. India with its knowledge base and lower costs will be leading the pack in the race for KPO businesses.
The economy of an industry is fueled by its innovation and thus there is a need to protect your innovations in order to make money from them. The firm protection of intellectual property requires a planned investment of both time and money. There are many ways by which you can protect your invention to avoid others making money from your efforts. When a company starts of thinking of a new project or going to file a patent for a newly developed product, it is suggested to conduct a state-of-art search or prior art search. This service is provided by many KPO firms in India at reasonable cost and better quality.
Thus it is assumed that KPO will be a global hub among the student in Indian in near future, with more demand for the people expert in this area.
For more information Please visit here
As India has the second largest English speaking scientific manpower pool in the world after the U.S. most of the Global competitors are looking forward to India to outsource their IPR needs related to patent searching, prior art search, infringement and validity search etc,. In a survey it was found that Indian graduates cost 50%+ lower than the U.S. and initial setup cost are half those in U.S. According to the Rick Wills, CEO, of Tektronix Inc.
"In India, free-market reforms are creating the world's largest back office, transforming the country into a major force in IT, Outsourcing, and critical service application delivery."
Confederation of Indian Industry (CII) study saying that KPO would grow at 46 per cent to become $17 billion sector by 2010. The BPO industry, only 26%. Global KPO pie in 2010 will be around $17 billion of which $12 billion (70%) will be outsourced to India.” Thus KPO is going to be global hub for the country like India. Areas with significant potential for KPO include pharmaceuticals, biotechnology, and ICT, besides legal support, intellectual property research and design and development for automotive and aerospace industries, CII stated.
KPO involves high-end processes like valuation research, investment research, patent filing, legal and insurance claims processing, patents and prior-art search, etc. India with its knowledge base and lower costs will be leading the pack in the race for KPO businesses.
The economy of an industry is fueled by its innovation and thus there is a need to protect your innovations in order to make money from them. The firm protection of intellectual property requires a planned investment of both time and money. There are many ways by which you can protect your invention to avoid others making money from your efforts. When a company starts of thinking of a new project or going to file a patent for a newly developed product, it is suggested to conduct a state-of-art search or prior art search. This service is provided by many KPO firms in India at reasonable cost and better quality.
Thus it is assumed that KPO will be a global hub among the student in Indian in near future, with more demand for the people expert in this area.
For more information Please visit here
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