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Benefits Offered by Outsourcing Companies Other than Cost Cutting

By Lan Lurie Subscribe to RSS | March 28th 2012 | Views:

Companies that grow rapidly year after year are very rare. Mostly few companies comes on front while others linger on the same stage. According to a recent research conducted on 2000 companies over the record of 10 years, the result came out was only one in 10 companies has achieved and sustained profitable growth. This means that majority of the companies never flourish. The question is that how the winning companies set themselves apart from others by sustaining their profitable growth. Actually, the secret to success is that they use capability outsourcing in quite more innovative ways than their competitors.

Up till now you think that the basic reason of doing businesses with business process outsourcing companies was cost cutting. However, the winning companies routinely use these outsourcing options for far more strategic ends, to gain capabilities that they do not have in house. They just do not outsource their non-core services but every thing from development of world-class talent to bring new products to market and enabling business model innovation. Based on research, here we will discuss some of the strategic capabilities that winning companies use.

Tapping Global Talent

In emerging markets particularly, lack of talent is one of the issues, which impedes a company’s ability to grow. Intelligent companies hire IT outsourcing companies to get rich in talent pool, which results in finer end products that leads to more revenue generation at low costs.

Building Partnerships

To capture value and reduce risk, companies build partnerships with outsourcing firms. Although the risks of dealing with IT outsourcing companies have increased over time but large number of companies continue to manage outsourcing at arm’s length. Companies can benefit a lot by making their external operations as strategic partners while tightly integrating with domestic operations. This makes the main company remain unaffected from crisis. Building partnerships is although one of the toughest tasks but if done and managed properly, it will make company recession proof. Companies have to keep good check and balance on its outsourced overseas operations to ensure quality management systems are in place.

Seize new opportunities

To seize new local market opportunities, companies need to establish their presence before their competitors do. To seize the opportunity, businesses hire the services of IT outsourcing companies to make avid presence all over the place. Businesses have to make large scale, multi year investments in everything from manufacturing to sales, collaborating with government organizations, local universities and other private companies. Making a move like this makes the business to stand all above alone in the market. This opportunity is obviously due to the services of outsourcing companies.

Bring innovation

To make market faster and boost innovation, companies need to hire extensive services of outsourcing firms. In consumer product companies, it is really important to bring out new product before the competitor do. Many giant companies outsource some of their R and D activities to some outsourcing company, which boosted their productivity. Now a days, half of the company’s innovative products comes from outsourcing companies. The world out there is full of possibilities; the only thing companies need is to exploit the possibility and to make a sharp and intelligent move on the right time.

Disrupting traditional models

Outsourcing companies has even disrupted traditional business process outsourcing models as businesses have found the way of becoming more successful with outsourcing solutions. A good example of this kind is of Acer, the company aimed to become world’s second largest computer manufacturer. To do so, it outsourced all the operation in which they get hard time, like manufacturing. This sharp move by Acer, allowed it to increase its manufacturing and sales while gaining greater market share. Now the company has a workforce less than tenth the size of its world’s largest competitor.


In nutshell, it can be said that there are far more benefits of dealing with offshore outsourcing provider. All the businesses should study their market carefully, calculate all the aspects and then prepare a strategic outsourcing model. While carefully calculating the all the economics in it and then implement it on their businesses on right time to get more than mere cost saving.

Lan Lurie - About Author:
Information technology field has a large scale canvas. It is not really easy to grasp all topics, provide up to date information and stay one step ahead. Being a professional writer, it is my passion to explore and share my thoughts about IT sector, services and achievements. I would appreciate any discussion on bpo business process outsourcing .

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