| Outsourcing simply means contracting out work, either | | | | especially females, to earn a steady income from a |
| essential or non-essential, to a third party who is | | | | moderately skilled job. |
| specialized in that particular task, located either in the | | | | So what are the Benefits of Outsourcing? |
| same country or overseas. When the service provider | | | | Outsourcing has many obvious benefits like reduction in |
| is located in a different country the outsourcing | | | | overall operating costs of an enterprise. By outsourcing |
| process is more specifically termed Off sourcing. | | | | the non-core tasks like housekeeping to a third party, |
| Outsourcing or off sourcing is a constantly growing | | | | the company can concentrate on its core areas, say, |
| industry estimated at $20 billion currently, and the | | | | software development. Also fixed costs like employee |
| biggest chunk of this outsourcing pie is received by | | | | salaries and benefits can be turned into variable ones |
| emerging economies like India, China, Brazil, Philippines | | | | as the company no longer needs to provide salaries, |
| and Mexico. So what are the various types of | | | | maternity leave, travel and dearness allowance to |
| outsourcing processes and how can an enterprise | | | | employees who are on the payroll of the overseas |
| benefit from them? | | | | service partner, all such essentials are the concerns of |
| Outsourcing is of multiple types, like Business Process | | | | the latter. This represents tremendous savings in cost, |
| Outsourcing (BPO), Knowledge Process Outsourcing | | | | which is especially useful during financial downturns. |
| (KPO), Medical Outsourcing, Accounts Process | | | | Another benefit of outsourcing is that the same high |
| Outsourcing, Legal Process Outsourcing (LPO) etc. In | | | | quality service is provided by the overseas service |
| BPO, which is the most common form of outsourcing | | | | providers, so there is no question of low quality work |
| or offsourcing, the non-core tasks like payroll | | | | for low rates, as assumed by many. Moreover the |
| maintenance, house keeping, and customer support | | | | members of the project team very quickly imbibe the |
| are handed over to companies with proven expertise | | | | work culture of the US or UK based client company |
| in the field. Similarly, a company would want to | | | | and also possess excellent communication skills to |
| outsource it's accounting processes to a service | | | | complete the task in the shortest time possible. |
| provider in India or other country. With more than 1.8 | | | | Outsourcing has also rendered continuous |
| million patents being filed annually, Legal Process | | | | development possible, which means working in a |
| Outsourcing or LPO has also emerged as a booming | | | | constant cycle without interruption, cutting down on the |
| industry. Legal services can be obtained for far lower | | | | development time drastically. While the UK based |
| rates in India than in the US and are of the same high | | | | team works during the daytime and sleeps in the night, |
| standards. Not just patents, even routine legal services | | | | the India based team, which enjoys day, picks up on |
| like filing affidavits, are being outsourced to third parties | | | | the task, thus rendering continuous development |
| as part of LPO. | | | | possible. |
| Some companies specialize in providing knowledge | | | | Outsourcing also has certain invisible benefits like |
| oriented services relating to research and e-education, | | | | obtaining a foot hold in new markets, understanding the |
| making up the blossoming knowledge Process | | | | psyche of the people before introducing a new |
| Outsourcing (KPO) sector. Even hospitals haven't | | | | product or service in foreign land and also certain |
| lagged behind other sectors and are actively | | | | obvious financial gains in the form of tax benefits, |
| outsourcing medical transcription and billing processes | | | | concessional land and so on. No wonder, outsourcing is |
| to cheaper destinations like India. In fact, medical | | | | here, not just to stay, but grow by leaps and bounds in |
| transcription is offering a new window of opportunity | | | | the foreseeable future. |
| to many young persons in the developing world, | | | | |