Outsource for More Profits

Recently Sony announced at Tokyo that it will be cutting 8,000 jobs which constitute five percent of its total permanent workforce and the rest from the part-time employees as a result of the global slowdown.

According to Sony, the new business plan is expected to deliver more than 1.1 billion in cost savings a year by March 2010.

What is offshoring? Offshoring is a type of outsourcing. Offshoring simply means having the outsourced business functions done in another country. Frequently, work is offshored in order to reduce labor expenses. Other times, the reasons for offshoring are strategic -- to enter new markets, to tap talent currently unavailable domestically or to overcome regulations that prevent specific activities domestically.

The phrase that I think describes the old, outdated approach well is, 'your mess for less', with the outsourced company taking on your operation and simply running it at a lower cost.

Today's corporation succeeds based on its ability to establish and sustain a network of strategic business partners. More and more companies are realizing the benefits in turning around core competencies and outside relationships. "Do what you do best and outsource the rest" is the credo, and for good reason.

Outsource for More Profits

Resourcing allows to free internal resources and allow HR practitioners to be more strategic. Instead of entering data, crunching numbers and pushing paper, HR can focus on core/non-administrative functions. Offloading the administrative work maximizes the organization's resources.

Alternately they can offer access to expertise. Organizations that outsource gain access to know-how they probably do not possess. They tap into a broad network of experienced people and best practices.

There are, however, some common misconceptions about outsourcing, including the belief that it can and will in every situation:

One of the core reasons is that outsourcing cuts costs thereby increasing profits. Although outsourcing will provide cost savings for some organizations (mostly those that are very large and extremely inefficient), in most cases, it is dollar-for-dollar cost neutral.

Take an organization with hundreds of people in HR: If it can save just 5 percent of the $100 million dollars it spends on HR, it will save $5 million. But a company with only 10 people in HR is not going to pay for the service by shifting the work off one or two employees. What will happen is that the department will gain an increase in benefits or services -- more bang for the buck.

Besides, "The capital crunch and cost pressures due to the financial crisis will force enterprises to outsource more of their back office operations to vendors like Sitel for cost arbitrage and access to talent pool. In spite of lower IT budgets, we are upbeat on surviving the crisis and sustaining growth," Adeni asserted.

Multishoring is a trend that mirrors the evolution of IT outsourcing. Gone are the days of 10-year deals being awarded to the traditional global outsourcing providers. The reality of IT outsourcing now is shorter contracts, with a number of specialist suppliers.

Similarly, multishoring enables companies to secure best-of-breed outsourcing solutions, thus tapping into specialist skills sets and maximizing the merits of each offshoring location.

You can have different suppliers, in different locations for different functions. As multishoring takes off, what we're seeing is a trend towards suppliers opening operations in different locations to give companies the option of a multi-shore strategy but with the security of a single supplier contract.

Simply outsource processes elsewhere in an attempt to break from the traditional mould
Use India as one supply location as part of a global strategy whereby elements in which India excels, such as knowledge process outsourcing, will be outsourced to India, but other processes will be nearshored, onshored or offshored to other locations. In terms of costs, India and China remain amongst the cheapest options, yet the tax-free incentives schemes offered by Dubai, for example, are leading to a far greater competition regarding cost in the global market place.


Conclusion - Outsource for More Profits

In conclusion, the new global environment is offering opportunities aplenty to end users. With the emergence of global service provision, end users have the world at their feet and the multishoring 'pick and mix' approach can maximize this.

By capitalizing upon several offshoring locations, possibly in tandem, end users can accrue a low cost offering with the particular skills that are required. India is still a vital cog in the outsourcing wheel, but taking the risk and going elsewhere can sometimes reap massive benefits.

Through innovative outside relationships, organizations are aggressively reshaping themselves and fundamentally changing the way they do business. Unprecedented levels of performance and profitability have resulted from these efforts. The bottom line is that outsourcing has become one of today's most powerful, organization-shaping management strategies. Smart corporations of the future will serve their customers by functioning more as a focuser of resources than as an owner of resources.

Outsourcing a non-core function like the data center to a high quality provider that gives enhanced levels of service at a lower cost helps businesses to compete in today's highly competitive marketplace.

In conclusion, it can be safely said that outsourcing allows freeing of internal resources and allowing executives to be more strategic. Instead of entering data, crunching numbers and pushing paper, company executives can focus on profitability and core/ non-administrative functions. In other words, offloading the administrative work maximizes the organization's resources.

Bottom line - Outsourcing is a necessary component of a profitable company’s business plan. By choosing wisely, a company can be more profitable and efficient by letting other companies take some of the load.

Human Resources Outsourcing

As most of you may be aware, human resource outsourcing provides a number of benefits to a primary organization. Generally companies outsource product development to reduce costs, time saving, boost bottom line and focus on core activities

In most cases I have never asked my primary clients regarding their clientele.

As in an outsourcing process, it would be unethical of me to contact clients directly, unless advised. In most cases when I contact clients, it is only for clarification of information provided from the primary source

Below are just a few of the reasons why a parent organization should consider outsourcing. It can maintain control over critical functions, while taking advantage of outsourcing non-critical functions.

I can speak up for outsourcing of resume writing and freelance writing as I take on quite a lot of outsourcing jobs on “resume writing” and “freelance writing” on a regular basis

In the midst of hundreds, if not thousands of resumes, recruiters and employers receive for any given position; your resume needs to stand out from the crowd. You must make the Recruitment or HRD Manager of the identified or targeted company, read your resume more thoroughly than just the rudimentary 10-20 seconds the vast majority of your competition will warrant. The way to do this is by designing an accomplishment driven resume.

As a Manager, you would know that by retaining the services of a freelance writer, you pay only the writer's fee, as they do not require monthly retainers, and can be hired on a project basis. So payroll taxes, benefits costs, and other employee expenses are eliminated.

Besides, a freelance writer works on a per project basis and works to deadlines.

So, the parent company’s projects are completed on time and on budget. In addition, customers need to see new content and how the services are changing with the times. A freelance writer has the skills to handle complex research and fact checking. Besides, a freelance writer can accommodate special needs and schedules, and can provide fresh perspective and expertise, that staff writers may have lost

In short, there is cost containment through reallocation of resources, by freeing up valuable resources to perform other duties, thereby getting a significant cost savings benefit, besides, the time savings benefit. This allows the parent company to focus on critical processes. Moreover, when employees know that writing projects are handled by a freelance writer, they have the time to concentrate on what they do best.

At this moment India is a favorite destination for human resource outsourcing for the IT sector outsourcing for US offshore outsourcing companies.

India is the leading Asian region in the outsourcing sector, while China comes a close second. Other Countries like Malaysia, Singapore, and Philippines etc are the other Asian countries that are growing rapidly in outsourcing sector and countries that outsource for big profits. Taking into consideration the outsourcing market in general, a big portion of outsourcing business will shift to Asian region because of low cost and excellent work.


Following are the factors which makes India a favorite offshoring center

- Stable government and the political stability.
- Development policies by government
- Pro -IT outsourcing government policies
- Good english speaking skilled professionals
- Economically stable
- Excellent GDP growth – 8%
- Highly IT skilled work force
- Good IT infrastructure
- Very good internet and telephone networks
- Telephone users - over 49 million
- Internet Users - over 19 million
- Good labor supply and cheap labour cost
- Good work force - More than 2 million IT graduates per year.
- Strong Technical and Professional Educational System ( IITs and IIMs )

India is doing well in IT offshore outsourcing and will continue to perform well mainly due to its skilled and excellent English speaking work force and can easily supply labor to the IT industry for the next 10 years

That’s about it for now – So, if you need a research assistant online, do drop me a line.

Give me a call should you need to outsource low cost any of your writing projects or need any information on how to outsource low cost any of your works.