Advance Technology and Innovation in the field of Information Exchange supported the Globalization of economies that triggered massive changes in the way trade and business were carried out in the new era. The business outfits are redefining their strategies to accommodate benefits of advanced technology in search of cost advantage and efficient management of work processes.
The outsourcing defines as ” an arrangement whereby a third party provider assumes responsibility for performing information systems functions at a pre-determined price and according to pre-determined performance criteria” Over the past few years, the outsourcing trend has gained rapid momentum. About the concept of transferring work processes to external parties in pursuit of low cost of operations and efficient handling of resources, the organizations are rapidly adopting it. The opportunity to cut costs and boost productivity is the essential advantage that this strategic concept provides.
To realized in terms of reduced cost of operations owing to comparative lower wages, expertise in specified work process, increased productivity and improved focus on business operations is the primary benefit of outsourcing. There is a specialized work departments for expanding the multinational companies and business units to handle each segment of work. The flow of information establishing well-defined channels of workflow wherein it focuses on increasing the productivity and enhancing the work quality. For the better quality of work, the channelization of work processes ensure it. It helps minimizing errors and risks. To improvise and innovate on the existing work technique, the staffs get attuned to specific work processes that enable them.
To the third party vendors, the outsourcing IT operations has become a common strategy for most companies. The external parties perform the same function that the Information Technology department performed in-house. This involves outsourcing of the company’s computer operations, the network operations and any of the Information Technology function to an external service provider.
In the Information Technology sector, it increase the volumes of work and expanding the client base is one of the primary reasons for outsourcing work processes. The multinational banks like HSBC, American Express BANKIK, Citibank and others outsource their process is like the credit card billing, follow-ups, collection and client build-up through various outsourcing agencies located in developing countries like the India and China.
There were pros and cons attached to this debate since it is a reality that the globalization has extended opportunities and it focus to the developing and under-developed economies. The outsourcing debate has been centered on the fact that employment opportunities was being shifted to emerge economies that provide low wages to similarly qualified people.
It is very challenging issue with most companies who are forced to raise the salary levels as a result in the high rate of attrition. It is no longer cheaper to outsource to some locations and outsourcers need to re-think their business strategies to maintain their profit margins.
The outsourcing not only improved the lives of the people in these countries due to increased employment opportunities, better pay packages resulting in the higher standards of living. However, in the reality the growing outsourcing industry has made it highly competitive and companies are offering attractive salaries to retain their workforce. Our company provides the best skills and ability because of the help of the outsourcing strategy.