Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Advantages of Outsourcing in Meliorating the Business Model

By Cody Subscribe to RSS | February 13th 2012 | Views:

Outsourcing is one of the smartest and effective ways to improve the business model of a corporate. A multitude of companies from different sectors have increasingly indulged in outsourcing. First, let us begin by knowing, what is outsourcing? It is simply the process in which two companies (local and foreign) companies partner together to execute the projects of the outsourcing client. However, outsourcing can also be done through a third party, commonly called service providers. And the party is also referred to as ‘Third party’. The third party is one that works for another party. This is very common in the field of call centre. Although the process of outsourcing has been done for several years, it is becoming increasingly popular for a variety of reasons. The business model of outsourcing includes various processes such as payroll, data entry, and billing.

The most important types of outsourcing are Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO). The former involves software projects while the latter deals with distribution of projects to the call centre. BPO deals with call centre outsourcing that includes Human Resource (HR), finance and accounting, and claims. Generally, outsourcing projects are handed out for several million dollars and are signed on a multi-year contract basis. Generally speaking, outsourcing involves the participation of two entities. All the deals and transactions of projects and funds take place only between the two. As far as the corporate are concerned, the process of outsourcing not only enables them get more business but also sell their brand value across the globe.

Advantages of Outsourcing

The main advantage of outsourcing is that it can be executed at lower costs and with better efficiency. These days, the local resources are in high demand and the labor-cost is also more whereas if the project is outsourced to other countries it saves a lot of money for the company. For example, people in the Asian countries charge very less (lesser labor costs mainly based on their currency and economy).

Moreover, these days, people in the Asian countries are so skilled and experts in their own field which makes them generate the work with better quality. The difference in the time zone is yet another advantage of outsourcing. If any high-priority, immediate assignment comes up the outsourcing companies can send the work in the night before they hit the sack and can expect the work to be completed by the time they see sunrise! Obviously, it is daytime in the Asian countries when it is night in countries like US and UK. So, outsourcing companies get round-the-clock support to get their jobs done which saves a lot of fuss. However, the companies needs to be thankful to the leading Broadband Providers for providing first-rate services and making it easier to exchange information through the Internet at lightning speeds.

Outsourcing also helps to enhance the productivity and efficiency by a large extent. As there are myriad direct and third party bpo’s, the choice for the right client becomes very easy. It also enables the outsourcing companies to expand their business and get new and better projects in the future. In case of call centre, outsourcing gives the main advantage of providing 24*7 customer/technical support to the customers. So, outsourcing also helps to improve customer service and cater to the needs of the millions of consumers in whichever time is convenient for them.

Outsourcing can be done more effectively by adopting certain strategies. For example, if a payroll is an issue for the outsourcing company, it would be good to find an expert payroll service provider and have tie-ups with them. This will get rid of the risk involved in carrying out the process.

Cody - About Author:
Cody is a freelance writer and a blogger. He writes on all categories including entertainment, technology, Internet, corporate strategies, and environment. He enjoys the luxury of surfing the web at high-speeds with one of the popular Broadband Providers.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

Title outsourcing to ease your workload
Published by Amitaabh Saboo on December 1st 2011 | Business
There are many pertinent questions that relate to the sale and purchase of property. Any forward loo...
The advantages of QuickBooks outsourcing for small enterprises
Published by Amitaabh Saboo on March 14th 2012 | Business
Standardizing your accounting can be tough without the right tools, and people to handle it. Thus, Q...
IT Support Outsourcing - IT offshore outsourcing
Published by Darren Serio on March 2nd 2012 | Business
IT support outsourcing - IT offshore outsourcing means relocating information technology, or IT, ser...
What steps need to be taken before outsourcing bookkeeping?
Published by Amitaabh Saboo on April 19th 2012 | Business
Owing to its several advantages, outsourcing bookkeeping might seem to be too lucrative to ignore fo...
Mortgage outsourcing is a must have for mortgage lenders
Published by Amitaabh Saboo on December 1st 2011 | Business
The process of acquiring a mortgage can be extremely difficult owing to the numerous procedures that...
Choosing the suitable broadband deal from vast array of deals offered by Broadband Providers, Uk
Published by Paul Rowley on March 20th 2012 | Business
You are probably already aware that there are a large number of broadband providers out there so you...
Business process outsourcing companies help organizations improve back office efficiency
Published by MOS Outsourcing on May 28th 2012 | Business

Business process outsourcing companies help organizations improve back office efficiency by prov...
What you need to know about QuickBooks outsourcing
Published by Amitaabh Saboo on April 24th 2012 | Business
QuickBooks is a business accounting software tool that can take care of all accounting related requi...
Gets customer care outsourcing support 24X7
Published by Jacobroodik on August 8th 2012 | Business
Nowadays if you want to sell an internet item it's much better to take in account that each item has...
Choosing the phone and broadband packages that suit you
Published by Paul Rowley on March 13th 2012 | Business
There are now a great range of providers of home phone and broadband services in the UK, each offers...
Grow your ventures with title outsourcing
Published by Amitaabh Saboo on December 1st 2011 | Business
The concept of outsourcing is a relatively new concept that has taken the business world by storm....
Cheap outsourcing solutions v/s quality outsourcing solutions
Published by Lisa Parker on February 6th 2012 | Business
Information technology has been growing tremendously and most of the companies focus on cost reducti...
Online bookkeeping outsourcing: Better outcome at lower price
Published by Amitaabh Saboo on January 6th 2012 | Business
An Online Bookkeeping Outsourcing service happens to be an incredibly popular conception nowadays fo...
The Buzzword in IT outsourcing: Staff Augmentation services
Published by Webmaster on February 5th 2012 | Business
With a population as large as India and dedicated to achieving excellence in the field of cutting ed...
HR and employee benefits outsourcing- an Overview
Published by Julia Roger on January 6th 2012 | Business
HR has always been a vital pillar in an organization. They are important to any company because they...
A perfect option for start up businesses- accounting outsourcing
Published by Amitaabh Saboo on March 14th 2012 | Business
Setting up an accounting arm for a small business can be highly impractical especially with the popu...
Mobile broadband from 3
Published by Michael George on January 11th 2012 | Business
3 Mobile has a wide range of options to help customers stay connected on the move with Mobile Broadb...
BT now stakes claim in TV and broadband pies
Published by Michael George on January 12th 2012 | Business
This is probably one of the largest telecommunications companies in the world and serves 170 differe...
Tax outsourcing has many advantages.
Published by Amitaabh Saboo on February 2nd 2012 | Business
One of the advantages of Tax outsourcing, is that allows companies to take advantage of costs diffe...
Practical reasons to choose online bookkeeping outsourcing
Published by Amitaabh Saboo on March 14th 2012 | Business
Small scale businesses need proper financial help to keep their funds and taxes in check. With an in...