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What is outsourcing?
Benefits of outsourcing
Why outsource in India?

What is outsourcing?

Outsourcing is the contracting out of a company's non-core, non-revenue-producing activities to specialists. It differs from contracting, in that, outsourcing is a strategic management tool that involves the restructuring of an organization around what it does best - its core competencies.


Two common types of outsourcing:
Information Technology (IT) Outsourcing
Business Process Outsourcing (BPO)


BPO includes Outsourcing related to Back Office, Accounting, HR, Benefits, Payroll, and Finance functions and activities.

Benefits of outsourcing:

• Reduce & Control Operating cost
• < Access to world class capabilities
• Redirect Resources towards activities which have the greater return
• Share risks
• Immediate Access to information and images
• Scaleable
• Accuracy
• Expert professional staff
• Efficiency
• Cost effectiveness
• Improve production and eliminate backlogs

Why outsource in India?

• Well educated labor market
• India has an abundance of computer literate manpower with English as their first language. Indian universities produce 85,000 graduates per year and enjoy a strong reputation in the global business community.
• Highly cost effective as compared to western countries
• By outsourcing to India an organization can save as much as 40-50% percent of costs compared to what it would cost in the western countries thus allowing an organization a great competitive edge. In terms of quality the clients' data is processed through the method of conventional "double keying" to provide an excellent accuracy level.
• Low labor cost
• The cost of qualified personnel being lower in India than the western countries is attracting several offshore partners to make investments in India.
• World class infrastructure
• India administers one of the largest telecom India administers one of the largest telecom networks in Asia with 24.3 million telephone lines expanding @ more than 20% per annum and 123,000 route kilometers of fiber optic cable network. Over 8000 VSATs are installed all over the country by various service providers, private users and Government agencies.
• Quick turnaround time
• The time zone difference between India and US can be used to advantage for providing quick turnaround time. While the US sleeps, India works, and vice-versa.
• This effectively gives a 24 hour working environment.