In an age of 2015, the outsourcing market is like a war zone, alive with competing innovators offering businesses the expertise and creativity of specialists across domains. Outsourcing is a matter of choice based on the business goals. As margins are shrinking, it is always likeable to go for outsourcing options where in your Opex costs are decreased to a large extent and is run by specialists across domains.
It does offer the opportunity for businesses to expand and prosper like never before. Private sector as even the Government sector opt to outsource so that they can hand over the skills to get better from a specialist Group who provide value addition based on their overall domain exposure/experience. It is a fact of life as it generates its own power of success as it also helps to moderate costs. However many consider it as a “image problem”; what if others(customers) come to know about it…however even the Top 10 companies in the world does Outsource today with all kinds of security and tabs put in place.
Outsourcing Services is also a means to learn the art of the trade and get tips of how they can learn and do better. Many get a scope to get into newer niche areas as they tend to outsource and get the better of it in areas which are already raw within the system. Outsourcing also means to scale up businesses and take lesser overheads in order to improve /steady margins. Running a call center of the magnitude of GE or Microsoft can be tricky.
For an example, Technology outsourcing can be found all the way to the top end. Iridium satellite phones are used by oil, maritime and defence industries across the globe. The satellite network connecting the calls cost $6 billion to launch. Since 2003, Iridium has partnered with Cambridge Consultants to work on the next generation of phones. Iridium uses Cambridge Consultants’ radio design teams when it needs, reducing overheads and expanding design capacity on a flexible basis. The relationship is now in its eleventh year, proof that both parties feel the arrangement is of mutual benefit.
Cost advantage and competitive work edge especially in countries like India are key factors for which MNCs in particular see the cost edge, besides improving their margins.Outsourcing Serviceshas grown manifold in the last ten years and has proved boon for developing countries like India, China, Malaysia etc. However on the other side people in home country of the multinationals are criticizing it on the ground of job losses and loss of currency. But as they say, for every opportunity lost thru Outsourcing there can be more gains in other sectors of the Industry which needs specialization.Publisher: fltcase