Is Outsourcing a Solution or Problem?

Sustaining a business in the current global market is already a challenge and complex. Add outsourcing and an offshoring module and you have an even bigger challenge with major changes in your ways of working and delivering to your customer. Language barriers, cultural differences and data security add to the complexity. The top reason to outsource overseas is to benefit from lower costs and cheaper prices and there is a widely spread expectation (2012 Global Outsourcing and Insourcing Survey Report) that the cost of operations will fall significantly for the same piece of work that has been done for a long time with in house personnel.

Wisely pursued offshoring can be a key strategy for organizations to remain competitive and strengthen their position in the market. When well executed, an effective transition can unlock the value of an outsourcing engagement, thereby laying the groundwork for a relationship that can last for many years to come.

Did you Know?

● The average manufacturer outsources 70% to 80% of its finished product.

● Outsourcing is no longer just about cost saving; it is a strategic tool that may power the twenty-first-century global economy.

● Outsourcing can increase productivity and competitiveness 10- to 100-fold.

● For every 1,000 jobs, British Airways sends to India, the airline saves $23 million.

● Companies are beginning to devote a portion of their outsourcing savings to helping employees make job transitions.

● Leaders can no longer afford to view outsourcing as a mere business tactic; it is now essential to remaining competitive on the world stage.

● Workers now compete globally, so individuals must continually learn more to vie successfully with their peers worldwide.

● The average company only spends about 2% of the value of its outsourcing contracts to manage its relationship with the outsourcing provider.

● In a survey, 90% of firms cited outsourcing as crucial to their growth strategies.

● A Java programmer earns $60,000 a year in the U.S., but $10,000 a year in India