Benefits of Outsourcing, Top Outsourcing Benefits and Advantages

Top Outsourcing Benefits and Advantages

Benefits of Outsourcing

Outsourcing relates to sourcing your non-core or even core tasks to third parties located in the same or different country and specialised in the activities or services that are to be outsourced or offshored. There are many outsourcing benefits and advantages, which is why nearly 70-75% of the Fortune 500 firms have outsourced a part of their work to other countries, most prominently, India.

Top Outsourcing Benefits and Advantages:

Huge Cost Savings:

Numerous surveys and studies conducted have shown that the prime outsourcing benefit lies in 40-60% savings in cost due to complete elimination or minimization of overheads like travel allowance, leave bonus, rent allowance etc. Besides these outsourcing benefits cost savings on account of offshoring also occur due to large savings on employee salary bills.

Access to Specialized Skills at fraction of the cost:

Outsourcing to countries like India has many benefits like availability of trained, hardworking and experienced manpower in large numbers and that too at just a fraction of what it would cost in the parent country. Indian IT professionals are skilled in all the current and emerging technologies and are known for their competence and excellent communication skills. In most of the companies the biggest cost consideration are the employee salaries and with this vital expenditure minimized bottom lines are bound to rise.

Focus on the core:

Outsourcing non-core or peripheral services for instance house keeping, lets you concentrate on your core business activities letting the specialists handle non-core services for you. This saves you enormous costs on wage bills, employee benefits, legal hassles and more.

Quicker Project Completion:

Outsourcing enables projects to be completed faster as the service providers are bound by pre-decided schedules. Quicker completion enables faster delivery of services to your clients whether in the parent country or in other countries. This way you can take up and outsource more projects thus setting in chain a continuous growth cycle.

Outsourcing increases customer satisfaction:

As non-core but essential services like customer support are outsourced to domain specialists who are skilled in the task, customer satisfaction is bound to increase as queries and problems are resolved quickly, deliveries are faster and company interaction is more satisfying for the customers.

Continuous Development becomes possible:

Another important outsourcing benefit is the possibility of continuous development. What this means simply is while your in-house development team sleeps after working in the day, the outsourced team in India or other country that enjoys a similar time zone advantage takes over from where the first team left. This not only saves costs but boosts productivity as well.

Get access to new and growing markets:

Outsourcing doesn't just benefit through cost savings but also has another important advantage in the form of exploring previously unexplored markets, especially in developing countries like India, where the economy is on a overdrive. Once you outsource your work to India or some other country you learn about the economy of that country, the customer preferences, the incentives offered, the competition, the work culture and so on. All this will be highly beneficial to your business once you decide to set up shop in the country.


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