Companies that think ahead of their time are the ones that scoop larger profits and set examples as leaders for their rivals to follow. Today companies are not outsourcing just for cost benefits but have well realized the fact that there is much more beyond cost savings.
Studies reveal that companies outsourcing various strategic business activities to vendors in the developing countries such as India, “best-in-class” companies reaped many more benefits beyond just cost savings than “industry average” companies or “laggards.”
These successful outsourcers also agree that “Looking beyond cost savings in outsourcing is strategically beneficial for both buyers and sellers of outsourcing services.”
Top 5 Benefits of Outsourcing:
1. Enhance competitive edge
Operating a global supply-and-demand chain is becoming increasingly complex in today’s competitive environment. By outsourcing strategically decided activities, an organization can deliver their projects more effectively than their competitors, thereby outperforming them. This means they are ahead in four areas: being responsive to customers, innovation, quality, and efficiency.
2. Increase shareholder value
Outsourcing helps in building capacities and preserving capital investment. As outsourcing reduces the need to invest capital funds in infrastructure and human resources of non-core business functions these funds can be diverted towards strategic business expansion. This in the long run results in increase in shareholder value.
3. Access to new markets
While entering new geographies, companies can fend off competition from local players. Outsourcing provides access to off shore resources with world-class capabilities who have already worked and gained expertise by working with many clients facing similar challenges in these geographies. This reduces company’s effort in chasing technologies (such as Revit / BIM), methodologies (local codes and standards) and trained people.
4. Achieve tighter dead lines
As the outsourcing firm acts as a virtual extension of their client’s in-house team, it helps the client to bid for projects with challenging deadlines. This can be achieved without any compromise on the quality of work delivered by the off-shore team.
5. Handle more projects
By opting for off-shore outsourcing, the internal resources of an organization are freed for other core activities, thus enabling them to redirect these people to greater value adding activities such as getting new projects and spending more time with their customers. This results in more project…