Outsourcing is one of the latest buzzwords in the business world. It is an effective business solution that will truly benefit any company. Outsourcing means you will be hiring a third party company to do your company’s business or at least part of it. So, why outsource your business when you can do the business of your company in-house?

Companies prefer outsourcing in another country or offshore outsourcing, particularly in developing countries, such as India, Philippines, China, and countries in Latin America. This is because there is quite a large pool of talented individuals joining the workforce every year in these countries. Qualified and talented professionals in these countries can provide the same quality services as the qualified individuals in developed countries with companies that outsource their business or part of it, such as the United States, Canada, and countries in Europe.

Here we will learn all about different types of outsourcing included into management, operational and supporting processes such as accounting, call center, data entry, hospitalist, human resource, IT (information technology), jobs, services, software outsourcing and more.

Tuesday, December 2, 2008

Benefits of Information Technology Outsourcing

In the world of software companies, you will need to produce a lot of different software to your clients. The software your company develops can be for large organizations, such as banks, financial institutions, airlines, and government bodies. Because of this, you will need a lot of capital and also a lot of manpower to handle the growing needs for different softwares for your company.

This is why information technology software companies in developed countries, such as US, Canada, and countries in Europe are now considering outsourcing their information technology in developing countries, such as China, Philippines and India to reduce costs and remain competitive in the information technology industry.

As an entrepreneur, you would want to definitely remain competitive in this industry. You want to satisfy more clients in order to keep those IT software orders coming and let your company grow. When you outsource IT, you will be making very large savings in terms of salary and also other expenses that your company may provide your employees.

By outsourcing, you will only have to worry about the contract and the payment that you will be providing the outsourcing company in other countries, which can be cheaper than doing it in-house.

Most IT jobs that are often outsourced are creating software in .Net, database solutions, smartcard solution, Java/J2EE, and wireless application developments. You have to consider that creating software for these things will require you to invest a lot of money and manpower if you do it in-house. When you outsource it, the technology and manpower is readily available.

You have to consider that there are many talented information technology professionals in these developing countries. Also, they charge far less than equally qualified professionals in well-developed countries. For example, try to imagine that you need a software and you let someone in your IT department design the program. The person you hired charges 1000 dollars for the job. However, when you outsourced it, you will see that an equally qualified professional did the same software design with the same quality and they did it for only 100 dollars. Now, try to imagine that you need a thousand of that software. You will see that you will save a lot more money if you outsource it rather than get it done in-house not to mention the company benefits that you will provide, such as insurance.

These are the advantages of outsourcing IT to other companies. By outsourcing, you will not only save a lot of money, but you will also get equal quality of IT software since there are a lot of talented and qualified professionals available in those countries. They will charge you far less on every IT job done instead of doing it in-house.

Because of the savings, you will be able to let your company grow. And, because of the quality of work, you will also attract more clients to hire your company to do the software they want.

Another great thing about outsourcing IT is that you can outsource all the small projects your company has and let your company focus on larger projects. This means that you will be able to effectively manage your company’s priorities with outsourcing. With outsourcing, you will be able to save a lot of money, prioritize your company’s goal and also get quality IT software products.

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