Outsourcing may appear to a layperson to be a waste of time and money, as well as an unnecessary complication. After all, why send business overseas when the work can almost certainly be done better locally? To a politician, outsourcing serves as a well-supported argument against taking jobs away from ‘our own countrymen.’ Sympathy for this cause might garner a few votes, but not much more.
However, outsourcing is a modern-day boon to the businessman. Outsourcing enables businesses to offload non-core, but critical, aspects of their administration to companies that specialise in those specific areas. As a result, the businessman is free to focus entirely on the areas of the company that generate revenue.
The most alluring benefit of outsourcing is its cost effectiveness. Human resource and information technology services are not cheap in the United States or Europe. Allow us to avoid complicated business jargon and simply state that outsourcing is a method of providing these services at a significantly lower cost, i.e., a cheap but highly productive mass work force. Take India as an example.
Each year, thousands of highly intelligent individuals graduate in a variety of fields. Almost all of them speak English fluently and have aspirations to amass large sums of money in a short period of time. The boom in BPOs over the last decade has provided them with an opportunity to realise those dreams. It enables them to remain close to home while earning nearly as much as they would if they took a job abroad. On average, a person earns between $500 and $900 per month. While this may seem like a small sum to an American, an Indian would be quite content with it given the current exchange rate. It’s a win-win situation for both your business and the outsourcing company.
There is no shortage of candidates willing to put up with night shifts for an extended period of time. As a result of their constant effort to prove themselves, you can always count on increased quality and productivity. The company to which you outsource will always ensure that you meet your targets, deliver on time, maintain stringent security, and maintain a level of productivity that will not tempt you to relocate your business. Employees are evaluated on a regular basis and terminated if they are found wanting in any area. The entire recruitment process and the hassles associated with finding (and retaining) the best person for the job are removed from your shoulders.
Companies that take on offshore contracts will also offer tax preparation and back office services in addition to human resources and information technology services. Each year, hundreds of commerce students graduate and go on to become chartered accountants in a country that does not lack them. Offering these services to foreign countries would benefit both parties. This will be accomplished through the use of the most advanced security procedures.
It’s all about the money. Let us not kid ourselves; we live in a material world. And material is referred to in technical terms as moolah. Thus, until the disadvantages of outsourcing outweigh the financial benefits (read: advantages), outsourcing as a legitimate and lucrative method of conducting business is here to stay.