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Outsourcing Projects

In the current challenging environment following the credit crunch crisis of 2008-9, more and more companies are looking at outsourcing as a means of keeping costs down. Operations that are most  commonly outsourced include helpdesk, call Center, data Entry, security, payroll,  and medical. The wages are often much lower in developing countries for a similar standard of work. breast cancer treatment Of late, outsourcing projects have caught the imagination of the entire corporate world. Organizations select this route to cut costs, boost bottom line and employ in-house resources to better focus on core activities. Outsourcing is concerned with turning all or parts of an IT activity to an offshore supplier. The project typically is a process whereby an enterprise decides to contract all or some of the firm's IT requirements, people and/or other activities to third-party contractor, who in exchange for an agreed fee, manages these assets over a predetermined time period.
The advent of the Internet has opened new avenues for freelancers, especially for developers from lower-wage countries. A number of websites have mushroomed across the web for outsourcing development work to such freelancers at rock-bottom prices ranging from US $5 to $15 per hour. The system for arriving at prices is usually accomplished by a reverse auction, wherein several participants bid for a single project. This category of web-based outsourcing by SOHO (Small Office Home Office) businesses can be thought as a poor cousin, of the much more sophisticated model of offshore outsourcing practiced by large corporations. The typical project size is few hundred dollars, easily fulfilled by offshore freelancers or small companies.

The primary objective of all outsourcing projects to obtain better quality at lower costs. However, the end results are often substandard, simply because the companies lack a clear well-defined outsourcing strategy. To realize the expected results, the projects need to be implemented correctly. For this reason, multinationals prefer setting up their own subsidiaries in developing countries.


Outsourcing Solutions 2011-2

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