How To Outsource To India To Save Time and Money
Outsourcing Results In Cost Savings
A business strategy that is not cost-effective is not worth the effort. Outsourcing does not fall in this category. In fact, one of the ways outsourcing is made-to-order is that it saves time of the management of a company in various ways. Time saved results in better utilization of resources, which ultimately translates into positive addition to a company’s bottom line.
Managers and companies know that it’s not just the number of hours of work that counts per employee, it is also the quality of output and reason of utilizing time in a particular way that can increase or decrease productivity. Thus, the key result areas in the time-cost matrix are quantity, quality, clarity of objective, and better alternative users of time.
The IT industry is a good example of how time saved can ensure not just cost saving but also profit. Consider a mid-sized U.S. company that markets software products locally and in offshore markets.
Extra manpower via outsourcing saves time
Off and on the American IT company deals with multiple projects or requires more hands for a particular project. In such a scenario it has largely two options to take, search locally to hire or outsource work to outsourcing/offshoring locations such as India, the Philippines, and China.
Immaterial of the choice, a client’s expanding needs can put a lot of pressure on time at hand of already hired employees including middle and top management. In this case, the U.S. IT company has no recourse but to increase either billable hours or hire extra manpower.
But hiring software programmers locally for a U.S. can be prohibitive cost-wise. In fact, if the cost of American software development professionals is traded off against increase in revenue due to an additional or larger project, the result can sometimes be negative or not worth the investment.
Outsourcing offers American IT companies a great way to hire quality software programmers at very competitive rates without disturbing the crucial time-cost balance.
Outsourcing enables delegation and delegation saves time
Today, outsourcing is a mature industry with experienced outsourcing companies. They know what users of outsourcing services expect. Outsourcing vendors are aware that outsourcing is a highly competitive and quality-conscious business and industry.
Given the level of quality assurance in outsourcing countries, the American company in the above example can delegate large chunks of a project and leave it to junior team managers to administer and deliver the project. This takes quite a lot of load off from middle and top management in terms of demands on their time. They can concentrate on strategic issues, which form the fulcrum of profit maximization in a forward-looking company.
Outsourcing reduces set up and exit time
Companies often have clients who want and expect their projects and work to take off as soon as possible. At the other end of the spectrum, there are clients who want to exit a certain project or fine tune it in as less time as possible. Outsourcing enables companies to deal with such business and client-related uncertainties.
Once a company decides to outsource, things move quite fast, as outsourcing companies are adept in booting a project within demanding deadlines. Together with infrastructure and hiring, outsourcing companies can get started on a project on as-and-when basis. Also, outsourcing’s flexible nature allows companies to scale down or close a project without incurring losses of seed capital and valuable investment of time of managers at every level.
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