Why outsource work



Outsource to India has become a very popular option for a number of very valid reasons. Outsourcing initially emerged as a way for companies to cut costs by having processes such as manufacturing and assembly done in overseas locations where costs were much lower. Lower wages and operating costs both contributed to these reduced costs. Shifting jobs to lower-wage countries a form of what is known as offshore outsourcing is an increasingly popular practice among U.S. businesses seeking to cut operating costs.


Outsourcing has also become political shorthand for presidential candidates to describe what is perceived as unfair international trade and its costs for U.S. workers. The issue has become highly emotional because of outsourcing's two dramatically different effects: it leads to layoffs and dislocations for thousands of U.S. workers, even as most economists say it will ultimately strengthen the U.S. economy.


These lower costs were appealing because they greatly improved the profit margins for the companies. On the other hand, outsourcing is now gaining in popularity for a variety of other reasons. While cost reduction is still a primary advantage, other elements such as access to industry experts, a larger workforce and more flexible options are being embraced as welcomed advantages offered by outsourcing.

  • Generally companies prefer third world countries to outsource their operations. The reasons being capital investment will be low and the skill sets required by the company is available at a much lesser rate as compared to the ones available in developed nations. Also some third world countries have a stronger work mentality and perhaps are more resilient in their work. A country like India is a very good example. Good educational system, a large workforce equipped with the skill sets needed for the job and cheaper investment by way of salaries have made major corporate companies to outsource their operations to India. India also boasts of a huge population, who have a working knowledge of English and this is perhaps one of the chief factors behind India being preferred as an outsourcing destination.

  • The business process outsourcing strategy is working out well for many big as well as small organizations will most of them reaping huge benefits. Many have been successful in reducing cost involved in back office operations by nearly half. Researchers and economists have not predicted with accuracy what is outsourcing of it jobs going to make. Outsourcing offshore services sure help companies reap benefits but the large scale implications still don't seem clear.

  • Everyone in business is under constant pressure to produce ever-increasing volumes of work to generate more revenue using existing staff. With outsourcing, you can utilize your existing staff to manage outsourced projects. Your staff manages the outsourced team, thus improving the output of each staff member. Outsourcing leverages several factors, including your staff's experience and the productivity per individual.

  • Companies across the world outsource work India to stay competitive. They realize that to maintain stay ahead, they need to reduce costs, provide the best quality, use the latest high-tech skills, and be reliable and innovative. When you outsource to India, you outsource to a mature industry with world-class systems and quality.

  • Business is not a steady, constant stream. You can never fully predict what situation the next day, week or month will force upon you. Ensuring you have the appropriate number of staff with the appropriate skills for the current workload is next to impossible. Outsourcing provides a certain level of scalability to help solve the enviable situation of significant growth. If you have a solid team that can manage the outsourced projects, then you are well positioned to handle the growth by outsourcing projects.


  • Outsource to India can benefit of enjoying a larger workforce when essential without the hassle of maintaining a larger staff. Through outsourcing companies can bring in additional employees on a contract basis during times of prosperity without worrying about having to lay them off or keep them utilized when the surge of work begins to wane. This is mainly relevant in industries which enjoy peak seasons as well as off seasons.

  • The offshore outsourcing workforce academic papers show that many companies outsource services to countries like India as compared to any other outsourcing destination. Outsourcing to India call center services are on the rise with major players entering the arena. Outsourcing services India is on the rise because of major advantages like better infrastructure, advanced technology and a cheaper and talented workforce. These facilities add to the benefits of outsourcing offshore to India making India a top outsourcing destination. In addition to call center outsoaring software outsourcing and transcription outsourcing services are also on the rise.

  • A further advantage of having a larger workforce is the ability to generate a larger profit. This is significant because smaller companies can find themselves in a position where they can compete with larger companies for bigger jobs by outsourcing a portion of the workload. Lastly, more flexibility is another substantial advantage to outsourcing work. Even the most well planned projects may suddenly end up behind schedule or under a time crunch due to minor errors, changes in plans or other incidental activities.

    Smaller companies who do not have the resources to compensate for these inevitable mishaps may find themselves in serious trouble without the ability to outsource work when necessary. These companies can take advantage of outsourcing in times of trouble to help them deal with problems without alienating clients or performing poorly on a project.

  • There are many small and big companies that outsource their low end as well as high end services to off-shore destinations like India, China, Philippines, and Russia etc. A few companies that outsource are IBM, Microsoft, Oracle, Cisco, Prudential, Hewlett Packard, ATT Wireless, TransUnion, First Consulting Group (FCG), Dell Computer Support, Bell South, EDS, GE Capital, GE, IBM, Schlumberger, Qwest and Rand McNally.

    Most of the above mentioned companies are fortune 500 and fortune 1000 companies in US and UK. Though the outsource to India scenario looks green there has been lots of criticism against outscoring in recent years by the workers in developed countries. A situation considered as temporary by many economists.
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