Outsourcing is the contracting out of a business
process, which an organization may have previously performed internally or
has a new need for, to an independent organization from which the process is
purchased back as a service. Though the practice of purchasing a business
function—instead of providing it internally—is a common feature of any modern
economy, the term outsourcing became popular in America near the turn of the
21st century. An outsourcing deal may also involve transfer of the employees
and assets involved to the outsourcing business part]
The definition of outsourcing includes both foreign or domestic contracting,
which may include offshoring, described as “a company taking a function out
of their business and relocating it to another country]
The opposite of outsourcing is called insourcing,
and is sometimes accomplished via vertical integration. However, a business can
provide a contract service to another business without necessarily insourcing
that business process
The advantages and disadvantages of outsourcing
The advantages and disadvantages of outsourcing technical
communications services depend greatly on point of view. This paper examines
outsourcing from the perspectives of the corporate buyer of services, the
supplier of services, and the individual technical communicator. Successful
outsourcing is assured only if the differing interests of all participants are
balanced correctly
Reasons for outsourcing
Companies outsource to avoid certain types of costs. Among
the reasons companies elect to outsource include avoidance of burdensome regulations,
high taxes, high energy costs, and unreasonable costs that may be associated
with defined benefits in labor union contracts and taxes for government
mandated benefits. Perceived or actual gross margin in the short run
incentivizes a company to outsource. With reduced short run costs, executive
management sees the opportunity for short run profits while the income growth
of the consumers base is strained.
This motivates companies to outsource for lower labor costs. However, the
company may or may not incur unexpected costs to train these overseas workers.
Lower regulatory costs are an addition to companies saving money when
outsourcing. On comparative costs, a U.S. employer typically incurs higher
defined benefit costs associated with taxes to account for social security,
Medicare, safety protection (OSHA regulations) and FICA taxes etc. than in other countries.
On comparative CEO pay, executive pay in the United States in 2007 was more than 400 times more than average workers—a
gap 20 times bigger than it was in 1965.
In 2011, twenty-six of the largest US corporations paid more to CEO's than they
paid in federal taxes.
However, it appears companies do not outsource to reduce executive or
managerial costs.
Qualifications of outsourcers
In the engineering
discipline there has been a debate about the number of engineers being produced
by the major economies of the United States, India and China. The argument
centers around the definition of an engineering graduate and also disputed
numbers. The closest comparable numbers of annual graduates of four-year
degrees are United States (137,437) India (112,000) and China (351,537).]
Companies looking to outsource their engineering
activities should evaluate the capabilities of the providers. There are many
bench marking reports by independent research and consulting firms which
analyze the vendors' capabilities
Insourcing
Outsourcing has gone through many iterations and reinventions. Some
outsourcing deals have been partially or fully reversed citing an inability to
execute strategy, lost transparency & control, onerous contractual models,
a lack of competition, recurring costs, hidden costs, etc... Many companies are
now moving to more tailored models where along with outsource vendor
diversification, key parts of what was previously outsourced has been insourced.
Insourcing has been identified as a means to ensure control, compliance and to
gain competitive differentiation through vertical integration or the
development of shared services [commonly called a 'center of excellence.Insourcing
at some level also tends to be leveraged to enable organizations to undergo
significant transformational change
The Importance of Outsourcing: The New Paradigm in Human Resource Management
With the advent of the Internet and increasing use of technology,
organizations have been better able to communicate, implement, research, and
embark on strategic changes in “real time” experiences. This has lead to global
changes in how a business conducts their strategy to remain competitive.
Outsourcing has become a major factor in this desire to have a competitive
advantage over their competition. Outsourcing has been done in manufacturing of
goods, provision or services and exchange of ideas primarily to reduce
operating cost. One way in which organizations accomplish this cost reduction
feature is by outsourcing some of its management functions especially in
marketing, logistics, human resources and accounting (http://www.wisegeek.com).
These features not only save money in salaries and wages but also decrease
other fiduciary responsibilities of the business
Benefits of Outsourcing
As addressed previously, future business engagement on a business to
business basis (B2B) are no longer bound by restrictive forces of time,
geography, culture and regulations. Businesses now have the option of
outsourcing to some of its primary functions to virtual organizations as a part
of its cost cutting initiatives. Wages and benefits in some industries continue
to rise and is a main factor in determining production cost. High-payroll
inputs have the possibility of creating a negative impact on a company’s
‘bottom line”. It is estimated that outsourcing in the 21st century will be a
fast growing trend in wage and labor cost management systems
Organizational expansion
During periods of growth an organization quite possible can have conflicts
in allocated space in their business environment. Often times, back-office
operations, will be crowded out by the front office requirements which might
necessitate the need of additional floor space, this requirement can possible
be a temporal and needs based requirements of addition facilities, and
requirement will increase cost of labor. Outsourcing these functions has the
potential of not only reducing expansion cost, but also exponential benefits in
increased available capital.
Outsourcing allows corporate entities to examine and consolidate employee
wages and benefits into outsourcing packages, which removes, the need for the
company to focus on employee issues. Companies can now use this energy in
focusing on other organizational task. Employers are able to remove the cost of
providing staff benefits such as healthcare, training, maternity/paternity
leave, sick leave etc. These costs usually have a contributory input by both
employee and employer. The removal of the cost of employers input has the
potential of freeing up capital and other resources which can be utilized in
areas of research and development and strategic planning (Mentzer, Myers, and
Stank, 2007).
Amado (2011) in the article, “How Does Human Resource Outsourcing Affect the
U.S. Economy?”, states 85% of organizations which used outsourcing of its human
resources produced cost savings, which equaled the amount spent and
additionally 25% of those companies surveyed had doubled their saving
(http://useconomy.about.com).
Management of Risk
Outsourcing of human resources removes risk directly associated with labor
disputes. The removal of direct contact with this process and the ability to
enter into contractual agreements with providers such as EinsteinHR, allows the
organization to budget payroll cost. This process also allows for stability in
the workforce. Additional organizations can source a pool of specialized
employee, removing the need for training, and issues concerning employee
retention. Employees provided by outsourcing organizations also offer skill
sets which might be required on an ad hoc basis. In fact, the organization only
pays for the work performed and does not have to factor in employee down-times
which occur during periods of low productivity.
Additional benefits in outsourcing labor and the use of labor pools are the
removal of some if not all insurance liabilities in areas of workers’
compensation insurance as organizations would not be required to meet
regulatory requirement. The onus of compliance would remain firmly with the
source company and any potential risk would not impact on the organization.
Production controls
Outsourcing offers to business entities
possibilities of retrenching sectors of the organizations which are either
nonproductive or cost deficient. Business operations can also benefit from the
flexibility of assignment to employees. An example of this would be in areas
where full time employment or skill appropriate employees are not readily
available. This flexibility is important for companies who have outgrown their
current market levels and require additional staff. Outsourcing also offers
the opportunity to obtain the services of technical or highly specialized
employees at a reduced cost. Normally some of these skills sets would be
provided by consultants whose cost might make their services prohibitive
Outsource
Image Processing Services to Outsource2india
Today, businesses are looking at new ways to
increase their flexibility to meet changing market conditions. One way to
enhance responsiveness is by outsourcing all non-core work to a capable
partner. This gives the business access to specialized skills. At the same
time, it frees precious resources, which can be diverted towards more value
creating tasks.
Outsource2india uses an optimum mix of people
and technology to provide image processing services to global clients. By
leveraging our capabilities, you can be assured of superior quality services at
minimized costs. We act as consultants and provide suggestions that add
significant value.
Why outsource image processing services to us?
Outsource2india provides document image
processing services that suit the needs of diverse clients. By outsourcing your
requirements to us, you get access to capabilities that you may not have
in-house. The synergy created by expert designers and animators working with
sophisticated software ensures that the final output is of a superior quality.
Some of our document image processing services
includes:
·
Image editing
·
Image enhancement and retouching
·
Background editing
·
Masking and Composing
·
Color correction
·
File type conversion
·
Stock photo services
An outsourcing partner such as Outsource2india
can provide you with the flexibility to meet changing business conditions. In
addition, with us taking care of the non-functional work, you can focus on
building your core competencies. This can be a powerful way to create more
value for your customers.
Benefits of outsourcing image processing
services to Outsource2india
Outsourcing your requirements for data image
processing services to Outsource2india has many benefits. We can help you:
·
Leverage an optimum mix of people and technology: Outsourcing your requirements for data image
processing services to Outsource2india gives you access to talented designers
and animators. In addition, we can help you leverage sophisticated software
such as Adobe Photoshop, Adobe Illustrator, InDesign, and Quark. This optimum
mix of talent and technology ensures that you get superior results every time
you work with us
·
Get access to skilled project managers: When you outsource image processing services to
Outsource2india, you can get access to dedicated project managers that help you
get superior results. They work to establish clear expectations at the start of
the project. During the course of the project, they facilitate open
communication through the use of regular e-mails, conference calls, status
dashboards, etc. This keeps us sensitized to your needs and helps resolve any
issues that may arise. In addition, they work with operational teams to ensure
that quality output is delivered on schedule
·
Get superior results: When you outsource image processing services to Outsource2india,
you get access to a skilled partner. We use a rigorous Quality Control (QC)
process to ensure that we meet and exceed your expectations
·
Get flexible services: When you outsource image processing services to Outsource2india,
you can be assured of getting services customized to meet your specific
requirements. We can deliver the final output in a format of your choice – jpg,
gif, png, etc
Outsource2india – Your ideal image processing
partner
Outsource2india believes in working as a
partner for its customers. At the start of every relationship, we focus on
understanding your overall business. This helps us develop customized solutions
that fit your exact needs. It also helps us provide suggestions for
improvement. Our emphasis is on directing our efforts to help you achieve your
objectives.
If you are looking for an outsourcing partner
that can help you realize your vision for your business, your search ends with
Outsource2india!
Contact
us to outsource image
processing services
If you call the
customer service line of a major business or corporation these days, there’s a
good chance you’ll end up talking
to someone thousands of miles away (or to a computer, if the company is really trying to
cut costs). If you go shopping for new clothes, it’s likely that some of shirts
and dresses you try on were made by people who are also thousands of miles away,
in shops far less glamorous than the ones in which the finished products end
up.
Outsourcing is so
commonplace in certain industries, we don’t even think twice about it anymore.
But over the past few years, the trend has spread to practices far beyond call
centers and apparel manufacturing. In fact, you might be surprised at the
industries that rely on outsourcing now
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