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Benefits of
Outsourcing |
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ability to focus on
core competencies and
build those focused world-class skills that directly
add value to customers
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breakthrough visibility leading to secure
business operations
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better quality of service to customers and
employees
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improved risk
management
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remarkable operational efficiencies with
lower total cost, reduction of investments in non-critical assets
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maximized IT investment
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a way to
speed up time to market by working with a partner with the expertise
and capacity to bring new products and services to market quicker
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opportunity for firms entering new markets to execute quickly with an
experienced partner
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The Key Points
that any outsourcer should
look for before going for outsourcing |
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Why Outsourcing?
Most common reasons for outsourcing are:
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Need to concentrate more on core competence
functions
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Increase in the number and
capabilities
of external
suppliers
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Difficulty in keeping up with the latest
advances in technology and other innovations
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Making the investments necessary to
continually be on the cutting edge is off-putting
Balanced Approach
Although the quest for cost
savings inspired initial forays into offshore outsourcing, companies are now
using offshore delivery to achieve significant improvements in business
performance – transforming outsourcing from a tactical and technical point
solution to a long-term business
strategy
for creating and defending
competitive advantage.
The decision makers are looking to leverage global sourcing to gain
long-term process optimization, business-oriented measurements, and enhanced
control over IT assets and activities.1
IT Infrastructure
Management Outsourcing
All organizations
and departments, regardless of size, operate under similar constraints:
control and reduce expenditures, enhance customer satisfaction, improve
margins and increase revenues. In order to accomplish these basic,
bottom-line endeavors, the enterprise must be able to accurately match
budget. Estimating and maintaining the costs for IT infrastructure can be
difficult. Due to either technological or human error, outages occur, and
the downtime due to these outages translates into losses and potential
budget and cost overruns. Studies show, IT infrastructure management
outsourcing offers enterprises totally predictable costs. One of the most
revealing value proposition,
organizations that select outsourcing services get, will be the ability to
incorporate finitely predictable budgets.3
Offshoring
‘Offshoring’ – the process of relocating business
processes to lower-cost overseas destinations - is a growing activity.
Offshoring grew from transferring simple IT software programming jobs to
low-cost locations. It developed with the outsourcing of call centres and
back-office activities, particularly in the financial services industry.
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