Advance form of International Business - Trends of Offshore Outsourcing

by Btucker With the rapid success in the field of information and technology and drastic changes in the philosophy of doing business of different nations of the world have changed the whole scenario of the international business. Adaptability of the internet and Innovations in the IT sector have made the world a single platform for the business and given birth to new form of international business called offshore outsourcing. Using the web and it’s latest technologies for the business and social interaction between companies as well as common people lead to flow of the cross boundary interactions, changing growth strategies, introduction of social media are few reasons for the success of information & technology. In the recent years these factors have initiated the small & medium as well as large companies of developed nations to outsource their work to the developing nations and gradually various trends of outsourcing the work comes forward like: Multi sourcing or Globalization, Mergers and acquisitions, Person to person (P to P), Green IT and virtual world. Big companies of the world have started outsourcing their work to more than one country and in this run India is big hub with knowledge base community and next is China. There are other nations which are emerging for rendering services such as Russia & Ukraine from Eastern Europe, so multi sourcing is the new trend in the global business environment. MNCs of the world are acquiring the small level companies, Person to person (P to P) consist of entrepreneurs to individuals in form of online tutorials, Editorial and Writing Services, IT services, sales & marketing services, etc. Big players of the business world have started situating their offices in the different parts of the world for expansion of business and which helps in performing direct meetings and dealings between companies. Green IT is the latest concept for the protection of the environment, which makes the companies to change the demands from their suppliers. The outsourcing concept helps in reducing cost of production and enhancing quality of the production. Outsourcing of web related jobs from big companies as well as medium sized companies has increased in recent years and there are thousands of offshore web development companies providing customized services. The most popular web services are website design & development, eCommerce solutions, software development, etc. Hence, Offshore Outsourcing Trends are creating new avenues of success for the global business environment. Offshore outsourcing company india offers custom software application development services like PHP/MySQL & ASP.Net Application Framework. For more details please refer this URL www.offshore-outsourcing-company-india.com Article Source: http://www.articlerich.com

IT Outsourcing Issues

by Mohsin Khan A globalized economy has brought us into close contact with other business professionals, and talking with a man located overseas is a thing of the past in this digital era. As businesses worldwide embrace the rules of globalization gradually, they have also realized its significance for their daily processes. One of the major opportunities for small firms has been the prevalence of IT Outsourcing. Most of all, it allows you big savings if done properly. But there are other significant benefits too, like it frees up more resources for you to focus on core competencies. And remember, you can benefit from the combined intelligence of an extremely diverse staff, and can employ the best brains of third-world countries at comparatively lower costs. On the other hand, if not done properly, it can rather turn into a nightmare and may even result in greater expenses as compared to internal work. Lengthy research papers have been written on this issue, and this comparatively tiny article is insufficient to inform you about all the problems. Hence, only the more widespread risk categories will be discussed in this small discussion. One of the very first motivations to outsource IT projects is none other than money; therefore, we will discuss that first. First of all, clients typically take into account only salaries when they compare in-house development against outsourcing. In fact, numerous people get the idea of outsourcing solely because they realize wages in some Cheapistan are less than half of what they typically pay. While this is no doubt a possibility, it wouldn’t do good if you take for granted that’s the only cost. Neglecting expenditure that comes from management, communication, and the like isn’t an option. Hence, do thorough research and take into account the entire cost of outsourcing; else, get ready for a shock when you see the accounting books at the end of the day. Next on, the culture of the supplier is very important for you. Do they implement standards to maintain a particular quality standard? Have they taken appropriate steps to defend their systems from hackers and viruses? You don’t like an ex-worker to steal your proprietary software’s source code and trade it on eBay, would you? Things similar to these would come into your mind when you create an outsourcing strategy. Also study the ethnic values prevalent in your suppliers’ country. As pirated works are a norm in a good part of Asia, you have to ensure your intellectual property will not get disseminated on a domestic scale via other channels. As a final point, some threats are exclusive to the nature of the IT project you outsource. If you are outsourcing tasks that can be hardly measured, you may face conflicts later. And don’t ignore small details by leaving them at the mercy of the supplier to decide. For instance, you can hire php programmer to make a site for your latest business. Nevertheless, if you fail to agree on the specifics carefully, you can later learn he used components that amplify your web hosting costs by a noticeable value. Start with a fresh mind as if you are putting your feet in a new meadow and do research as needed. There are experts in your country who can help you make or break the deal if you wish. Don’t forget that subcontracting in itself isn’t a botched concept; but you should be aware of the best practices to succeed smoothly. Mohsin Khan works for an IT outsourcing consultancy firm. You can hire Php programmers through us for successful outsourcing of your jobs. Article Source: http://www.articlerich.com

Outsourcing: The Advantages And Disadvantages Of Outsourcing

Author: Dee Power

Outsourcing occurs when a business secures (purchases) products and/or services from a third party, as opposed to producing them in-house. There are several advantages and disadvantages to outsourcing. Advantages of Outsourcing One of the biggest advantages can be lower personnel costs. By outsourcing job duties to non-employees, a business does not have to pay consistent wages or offer additional employee benefits. The company may pay lower taxes because independent contractors, the people who complete the outsourced projects, pay their own withholding, social security, and other taxes. This can add up to substantial savings. Some businesses choose to take their outsourcing one step further by choosing a vendor, located in another part of the world. Doing so typically saves them more money because they end up paying a much lower wage than would be necessary in their home country. The disadvantage is that these vendors may not understand English and communication is more difficult. Many times, outsourcing speeds up production time. Since the third-party vendor will only be concentrating on one specific task, instead of numerous office duties, actual production time can be greatly increased. Outsourcing gives a business the flexibility to change third-party vendors whenever necessary. This process is not as time-consuming as the normal employee hiring process, because they are not screening individuals, they are considering established companies with proven track records. An excellent example of this is customer service. When a business outsources its customer service department, it does not have to hire and oversee thirty individual operators. Instead, it can hire one call center, which will perform all needed tasks. Recent studies show that information technology-related tasks are outsourced more than anything else. Other common department functions that are outsourced include: human relations, training, accounting and supply management. Whether a business chooses to outsource on a temporary basis or permanently, the advantages are well worth the decision to do so. Most businesses, which set out to outsource temporarily end up making an ongoing commitment. Disadvantages of Outsourcing One of the biggest disadvantages of outsourcing is undesirable results. This is especially true when a company hires a third-party vendor to mass produce a product. In the event that the finished products do not meet quality standards, the manufacturing process must be repeated by a different vendor. Not only is this a waste of time and materials, it can also be very costly for the company who outsourced the project. They are essentially paying twice for the same job. In addition there is always the possibility that the company may lose sales, during this same period because of the lack of available product. Another disadvantage of outsourcing is a loss of jobs. Many times work is outsourced simply as a means to save money. Outsourcing to a foreign country typically saves a company a great deal in wages. So, the choice is made to reduce their local workforce, at the expense of the laid-off employees. In turn, it can cause community uproar and even a decrease in business and profits. This happens when local consumers make the decision to shop elsewhere, as a way to voice their disdain. Outsourcing customer service jobs, to foreign countries, is on the rise. Many large corporations including credit card companies, shopping networks and computer manufacturers are making this change. The problem with this is a lack of communication. It can be very frustrating for a consumer who is calling in with a customer service issue. When this individual cannot understand the customer service representative they are speaking with, it just causes more frustration and does little to solve the problem.

About the Author:

Find more about outsourcing. Dee Power is the author of several nonfiction books and the novel "Over Time." More professional expert resources

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