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Outsourcing Central



Offshoring Benefits


 
  • IT Outsourcing is a proven Strategy
Today more than 60% of companies in North America have seriously considered moving apart or the whole of their technology services offshore. Already a substantial number of companies either have offshore units or have included offshoring in their business strategy. Considering that companies could achieve up to 40% of cost savings by moving work offshore, this started as a simple mechanism to only lower costs. But today, outsourcing is a strategy to become more productive, more performing, and more agile, and yet save on costs and investments. Everyone from a Fortune 500 to a startup company is considering offshore outsourcing to –
  • Reduce expenses
  • Re-focus on core business issues
  • Re-allocate capital investments
  • Access a bigger resource pool
  • Reduce time-to-market
 

  • Reduce expenses - low cost factor
When resources are difficult to find in a local marketplace, then outsourcing is the definite answer. When competition is so fierce that cost savings are essential to survival, then outsourcing is a definite answer to the problem. When you do outsourcing to an offshore destination, you end up getting even better results - more cost savings and access to a bigger resource pool.

Typically in offshore outsourcing; companies end up saving anywhere between 20% and 40% overall on the production cost. You can reap benefits on the following fronts:

Reduced Labor Cost
Convert your fixed cost into variable costs
Reduced recurring investments
In an offshore destination resources are 40% to 80% cheaper
Fixed salary cost is replaced by variable provider cost dependent on work
Ongoing expense on employee trainings and infra is no more your problem.
 

  • Reallocate Capital – free up your precious capital for other functions
Outsourcing your technology and related services will free up your capital allocated towards office infrastructure, technology related hardware, network etc. In an outsourced scenario, you need a thin technology team to monitor and interface between your offshore development center/team and your in-house team.
 

  • Refocus on business – focus more on your customers
At the core of any business is the customer, and sales & marketing, irrespective of the services that the company provides. A company might be provider of technology solutions or a provider of business solutions - in either event, technology is a key component. Irrespective of what a company provides, when technology services are outsourced, the company gets to focus more on its customers and on its business development methodologies.

In today’s challenging market conditions, it makes even more business sense to offshore outsource your technology functions or any of your non-core functions, especially if there are cost savings in doing so. This enables companies to:
  • Focus its energies to create a competitive edge
  • Focus on sales & marketing, and branding
  • Focus on efficiency, performance and agility
  • Shift focus from internal issues, to the customer
Today, offshore outsourcing is a mature phenomenon where companies like BrickRed have the knowledge, capability and experience to work as your service provider partner and thus handle the complexities associated with the outsourced functions of your business - in effect, helping you refocus your energies.
 

  • Reduce time-to-market – make it your competitive edge
All businesses strive towards creating a competitive edge, by reducing production cycles and addressing their customer’s needs much faster and at lower costs. Businesses also strive to reach a target audience before the competition. Offshore outsourcing gives you that extra edge by reducing your production time because ready-to-use manpower and infrastructure is already in place with the provider. Otherwise, you would have invested resources in building a team, training people, and creating an infrastructure to host thethem. An offshore outsourcing provider comes with these benefits and can thus get you started quickly – thereby serving to make you not only cost competitive but also fast to market.
 

  • Access a bigger resource pool – people are at the core of technology services
It all started with the Y2K problem, when the biggest systems and business applications in the world were facing the biggest challenge at the turn of a century. It was then that almost all Fortune 1000 companies rushed to make their legacy systems Y2K “compliant”. But the shortage of skilled information technology professionals in developed countries meant that they had to look offshore. Many found answers in India. The period saw huge amounts of Y2K work coming into India.

It was around this time that many companies tested the waters with offshore outsourcing and then never looked back. Today, companies have access to a huge resource pool that is experienced in building and maintaining complex business critical systems. Moreover, companies do not need to invest a huge sum of money in training resources, and one can instead, get started off almost immediately, with minimal investment.
 
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