Outsourcing is a big thing these days call centers and software houses are multi million dollars business in countries like India Philipines on the other hand the countries like USA & UK are having very hard time coping with it the costs are somewhat getting higher in the out sourcing as well.

In my openion this trend of transferring calls of the valued customers and citizens to an other country which is right on the other side of the earth seems very unhealthy. Lot of changes will develope in the society specially in terms of behaviors and rationals. I think outsourcing softwares and accounting etc is ok but letting customers talk to people across the continent where people are actually sleeping looks viered.

What are your thoughts i would be interested to read.

Regards.

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Jamal Panhwar
CEO
Pakistan travel & Culture Services
Dubai Travel & Culture

Waht exactly is outsourcing? Just starting a customer care center in another country? I would like to start it, but how?

Outsourcing is an effective money saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally. An example of a manufacturing company outsourcing would be Asus buying some of its computer components from another manufacturer in order to save on production costs.

You need to target a sector or field where you want to do business on, and then decide on its planning.

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Companies in US might incurr costs during intial stage of outsourcing, but it would be written off with in no time. This would reduce alot costs for them inturn they end up in making profits. Well Customer doesnt know whether he is talking to an American or Indian or phillipinees, coz the accent and the way of talking would be no different, thats what it is intresting about Indians. Rest of south asian countries like china, pakistan, srilanka, etc....are weak in english.

well cant really underestimate any country on basis of language, china has higher capacity in many products then other countries, important thing here is the ability to find right and reliable source to outsource their requirements, quality is most important, and surely its worth a lot for them then hiring local staff for countries like usa and uk.

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Rahul i hope this answers your question

Outsourcing began in the early eighties when organizations started delegating their non-core functions to an external organization that was specialized in providing a particular service, function or product. In outsourcing, the external organization would take on the management of the outsourced function.

Most organizations choose outsourcing because outsourcing offers a lot of advantages. When organizations outsource to countries like India, they benefit from lower costs and high-quality services. Moreover organizations can concentrate more on core functions once they outsource their non-core functions. Outsourcing can also help organizations make better use of their resources, time and infrastructure.

In outsourcing, the outsourcer and the outsourcing partner have a greater relationship when compared to the relationship between a buyer and a seller. In outsourcing, the outsourcer trusts the outsourcing partner with vital information. Outsourcing is no longer confined to the outsourcing of IT services. Outsourcers in the US and UK now outsource financial services, engineering services, creative services, data management services and much more.

Most organizations are opting to outsource because outsourcing enables organizations to access intellectual capital, focus on core competencies, shorten the delivery cycle time and reduce costs significantly. Organizations feel outsourcing is an effective business strategy to help improve their business.

Regards,
Moniq

It is like when your work get done by some one else with good quality. AND if it is done out side of your country then it is called as offshore outsourcing

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IT

was that use full ?

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IT

Actually there are many scale of an outsourcing process:

There are local outsourcing or sometimes known as contracting.
Offshoring, what you have quoted as US or European company transferring calls center abroad for example.
Then there is share services outsourcing, which is basically internal sourcing. Which is commonly applied by MNCs.

In my opinion, there are two main decision making factor for outsourcing, no matter which category it falls into:

1) The stratetegic importance of the function that you want to outsource. This is what was discussed about core competencies of a company. A company should assess its core competency and think about outsourcing only non-core functions.

2) The transaction cost. The cost of performing this activity in house versus externally. As many decisions for outsourcing are based on cost saving measures, you must be able to determine the true transaction cost or total cost, not just the contract cost. Remember, even when you outsource, you still need the interface in your company and this interface transaction have a cost too.

Some people object to the idea of outsourcing for the fear of losing the knowledge or capability building capacity of their company. However I do not think this is true. In todays Globalized world, competition is getting more and more intense. There are hardly any 'trade secrets' that can be used as your core competencies. The real fighters are the competency, cost effectiveness and efficiency of the work being performed. If another company in another side of the world can offer this, outsourcing can be a good strategic decisions.

Also remember, outsourcing is an excellent way to obtain expensive technology when you are not ready for the capital investment yet.

KSLye
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