Outsourcing – Benefits in Troubled Times

Surprising News

In the current scenario of a global economic downturn and US recession, questions have been raised about the practicality of outsourcing. Surprisingly, no major shifts in outsourcing patterns have been witnessed and in fact increased outsourcing trends have been predicted to tide over the current recessionary climate. This is because margins and revenues have still to be maintained in times of cost cutting and cash crunch and off shoring continues to be a dependable avenue of cost saving.

Outsourcing is a reality that is here to stay and there is far less resistance to this global phenomenon today as compared to the early 1990s. The consultancy experts at Leo Technosoft, an experienced player in the field reiterate the obvious benefits of outsourcing:

Ø By offloading non-core functions, companies can focus on their core competencies at home and utilize the savings derived from offshoring towards R&D, infrastructure and other mission critical projects

Ø Access to a highly skilled, cost-effective pool of service providers with critical domain knowledge

Ø In the present economic environment where companies attempt to cope with stringent budgets, offshoring offers tremendous cost savings, eliminating the need for additional man-power and training.

Ø Over the years the growing maturity of off shored markets has been proven beyond doubt with all round increase in productivity after the initial hiccups.

Today the benefits of outsourcing go beyond the obvious cost-savings, improved productivity and speedy time-to-market. Outsourcing has become an indispensable business tool to gain competitive advantage and to drive high performance. Setting up an Offshore Development Center (ODC)

provides not only enormous cost benefits (due to lower cost of operations) but also ensures highest quality output and allows a company to focus on core competencies. India in particular has the huge advantage of a large English speaking, technically competent and relatively cost-effective talent pool.

The single most critical factor to ensure a smooth transition & migration of activities to an alternate location through outsourcing is to benefit from the services of a trusted ODC partner. As Mr. Satyen Jain, Director of Leo Technosoft an India-based offshore development and consultancy company puts it “ the key is to identify an ODC partner with a global network of clients, helping start-ups, small and mid-sized companies achieve business goals by offering dedicated ODC services that consists of:

• Providing consultancy to make the offshore development centre successful and profitable to maximize ROI
  


• Dedicated, skilled personnel and technical infrastructure (both hardware & software)
  


• Highest levels of privacy and confidentiality of work
  


• On-time deliverables
  


• State of the art communication facilities in a 24/7 work environment
  


• Cost-effective software tools
  


• Extensive experience in handling outsourced projects”
  

Elaborating further, Satyen amplified his views by giving the example of his own organization. As he says “At Leo Technosoft we ensure that you have a comfortable experience during the whole process of establishing an ODC. Our dedicated offshore development team consists of a pool of talent with multiple skills.”

The key to a successful relationship lies in trust, commitment and ROI. Execution of a number of successful projects and the fact that clients come back to the same ODC time and again proves the mettle of an ODC team. Further, experience in partnering with development teams in different geographies and time zones exhibits the versatility of the ODC. In the course of setting up an offshore centre, a good ODC must provide the services of an exclusive team, wholly committed to a project and must act as a practical extension of the home team. The most up-to-date technologies and processes must support the project, integrating seamlessly with the client company’s unique needs. Services must be leveraged according to the client’s budgets and time frames.

With an overall economic slowdown predicted in the year 2008, the immediate outcome of outsourcing is bound to be seen in tangible benefits seen in cost savings. In the larger context though, the most important intangible benefit is the tremendous value addition that a company accrues through this process in terms of getting the best expertise, cross border integrated solutions and access to rugged quality assurance.