| The term "Outsourcing" means delegating or passing | | | | client identifies specific time consuming activities which |
| on responsibility to a third party in pursuance with an | | | | can be handled more effectively by an specialist |
| agreement. The decision to outsource is a strategic | | | | (vendor) and outsources it. |
| one as it involves weighing the probable cost savings | | | | The various factors that are to be considered while |
| against the consequent loss in control over the product | | | | choosing a vendor are firstly whether the vendor has |
| or service.Outsourcing involves a contractual | | | | experience in providing service that the client wants to |
| agreement that defines how the client and the vendor | | | | outsource. Secondly it is essential to find out whether |
| will work together. The growth of outsourcing is partly | | | | the vendor has been able to provide quality services |
| due to the changes in business philosophy that have | | | | to their clients. Thirdly the client analysis on the details |
| occurred over a period of time.Earlier companies | | | | like the technology, software and the infrastructure of |
| aimed to acquire other companies and diversify their | | | | the vendor. Fourthly it is essential to check if the |
| business As companies found it diff ult to manage a | | | | vendor has skilled personnel pessary to ensure |
| large group of unrelated business they starting | | | | successful completion of the outsourced project. |
| focusing their attention "core competence areas". | | | | India - The preferred destination of Outsourcing |
| Considering their unique experience and expertise the | | | | business |
| companies took efforts to identity the core | | | | India is no longer known as land of Elephants and |
| competence areas that would help them gain a | | | | Snakes but the land of High Talent professionals and |
| competitive edge over others in the market as the | | | | cost effective corporate BPO solutions. India is |
| client companies usually outsource to a vendor that | | | | becoming the leader in outsourcing with no close |
| specializes in a given function and performs that | | | | competitors. It's made possible with the help of various |
| function more efficiently than the company could do | | | | factors. |
| thereby saving on the cost. Companies also outsource | | | | India has a winning edge over other countries because |
| to reduce the work burden of its employees and also | | | | of the following reasons. |
| to relieve them of tedious tasks thereby enabling them | | | | * Availability of English speaking, skilled human |
| to develop their core competencies. Companies | | | | resources in plenty |
| outsource information technology functions in order to | | | | * Availability of cheap work force to offer cost |
| gain access to new technology and outside expertise. | | | | effective BPO Solutions. |
| Outsourcing requires a good understanding of the | | | | * Well defined process to address global needs. |
| vendor organization's capabilities and their future plans. | | | | * High conscious towards quality. |
| Outsourcing can be total outsourcing or selective | | | | * Government's support to develop the industry. |
| outsourcing. Total outsourcing occurs when the client | | | | * Availability of advance technology at par with |
| dismantles the entire departments or divisions and | | | | western countries. |
| transfers the complete responsibility to an outside | | | | * Flexible human resources to work in various time |
| vendor. Selective outsourcing occurs when the the | | | | zones. |