| Companies in the US have been trying hard to find | | | | party service providers' capabilities and abilities. |
| ideas to increase productivity levels of the company. | | | | There are many 3rd party service providers in |
| Outsourcing allows companies to send non-core tasks | | | | countries like India, Philippines, Pakistan, Malaysia who |
| to companies overseas. With the overseas offering to | | | | have recognized the demand for outsourcing in the |
| do work related to the non-core tasks at significantly | | | | United States of America. Whilst India provides |
| lower costs, companies can reduce on the cost | | | | services at a very low cost and has a large pool of |
| investment by them on resources to do non-core | | | | English speaking graduates, Philippines commands an |
| tasks. More importantly, with the service providers and | | | | excellent infrastructure at its disposal. The 3rd party |
| the client company equally focusing on quality and | | | | service providers situated in these countries tap into |
| timely delivery of the services, companies in the USA | | | | the advantages provided by the country, combine |
| can afford to get quality services at reduced costs. | | | | them with infrastructure and resources and provide |
| This also allows them to allocate their resources to | | | | services for the functions outsourced to them in a |
| focus on core business processes which in turn may | | | | cost-effective and a qualitative manner. |
| increase the company productivity and revenue. | | | | For any outsourcing contract to be successful, it is |
| Functions like Accounting, Payroll Processing, Medical | | | | important that companies realize that Project |
| Transcription, Data Entry, Software and Applications | | | | Management of the work, risk management of the 3rd |
| Development and much more can be outsourced | | | | party service provider and quality management of the |
| overseas. Companies can outsource a function if it is a | | | | work is extremely important. Companies who |
| non-core task to the company and if the companies | | | | outsource the work need to be pro-active about these |
| get a significant cost advantage by outsourcing the | | | | three aspects even before the contract is signed. A lot |
| work. After a company decides to outsource the | | | | of the functions that are outsourced may require the |
| work, it would need to select a 3rd party service | | | | company to train the service provider exhaustively |
| provider overseas who could offer these services at | | | | before the work could be done. All these factors put |
| a negotiated cost between the service provider and | | | | together along with the 3rd party service provider's |
| the client company. Needless to say, the service | | | | commitment to provide quality services at a low cost |
| provider needs to have the necessary expertise and | | | | will result in a win-win situation for the company which |
| experience to provide the outsourcing services to the | | | | does Outsourcing. |
| client company in the USA. A company should ideally | | | | Bottom-line, Outsourcing is good for your organization if |
| do a feasibility test either by himself or through an | | | | it is managed efficiently. |
| offshore outsourcing consultant to determine the 3rd | | | | |