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|Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources. Outsourcing became part of the business lexicon during the 1980s.|
In today’s world, being competitive will mean getting what you want in life and achieving your goals. This is also true in the business world where companies are now struggling to be on top of other companies in order to get their company to be the number one in the business that customers will choose.
However, because of the recent decline in the economy, companies today can no longer depend on themselves. They need help in order to make their companies competitive. This is why companies today are now outsourcing their business process or at least some of their business process to other countries.
The outsourcing job is considered as one of the largest industries in developing countries today. Besides, with the opportunity to earn lots of money, who wouldn’t want to be in the outsourcing business?
Companies in the United State, Canada and European countries are now considering outsourcing their business process or at least some of the business process to developing countries, such as India, Philippines, China and Mexico. This is because labor rates in these developing countries are considered to be cheaper than doing it in-house.
For example, in the software development industry, the company will have to hire talented IT professionals in order to get the job done. If they hire their own IT professionals, they will pay them a very high professional fee to develop the software.
However, when they outsource it to IT companies in other countries who accept outsourced jobs, you will see that their equally talented IT professionals will do the job at a fraction of the price you have to pay in your country. Not to mention the full company benefits that you have to give to your IT professional.
Here is a detailed example on how it works in order to get a clearer picture. If an IT professional in your country will charge 500 hundred dollars for a project and you need at least one thousand of those projects, you will be spending five hundred thousand dollars to get it done.
However, if you outsource it, you can expect that the equally talented IT professional in that country will only charge a fraction of the cost. They will only charge about 100 dollars per project. So, if you need one thousand projects done, you will only spend 100 thousand dollars to get all the projects done if you outsource it. More or less, you will be saving 400 thousand dollars to get the job done. And, this is a significantly large amount of money.
Another benefit that you can get from outsourcing is that you can divide your company’s heavy workload. Because of this, your company will be able to focus more on important matters. Outsourcing can free your company and let it expand to a higher level.
There are other benefits that you can take advantage of in outsourcing. Not only can you save a lot of money in operational costs, and make time for your company to tackle on more important things but you can also make your company grow because you will be satisfying a lot more clients.
With outsourcing, you will be able to save lots of money and your company will fully use its resources by freeing it from less important jobs and let it focus more on very important projects. Just make sure that the company you plan on outsourcing your business process to can get it done on time and get it done right. By making sure of the quality, you will be satisfying your clients.
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