Monday, 8 October 2007

Why to outsource?

I will start by explaining you the philosophy behind business outsourcing. It is “do what you do best and leave the rest to Business Process Outsourcing (BPO) companies.

Companies outsource all their non-core business to Business Outsourcers, in order for them to save management time as well as resources. They can then focus on developing their core competencies.

I will state some of the newest and most common tasks that are today being outsourced to BPO companies. These are: Human Resource Management, Internal Audits, processing payrolls and accountancy. The classic ones dealt with by call centers is providing customer service through hotlines, reservations…

One of the most important objectives for managers is to maximize shareholder value. To achieve that, they will cut down costs. Outsourcing is known to be one of the ways used to cut down costs.

Outsourcing companies also help you in that they manage your risks. You will not have to worry about your technology becoming obsolete not about chasing new technologies. If you outsource, you will be covered if the government or other regulating bodies change the rules and regulations that actually prevail.

Companies will often choose to outsource to have access to a larger pool of qualified workers. India boasts to have the largest pool of qualified personnel and that is true. Every year 180,000 engineering graduates join the labor market. Google has announced that its decision to setup a center in Banglore is more motivated by the largest pool of skilled people than the financial aspect.


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nish said...

Thanks for this useful information that you have been shared to us readers. I am looking forward for your next post! Good luck for your next post