Outsourcing
| Offshoring
Organizations decide to outsource
product design and development, business processes and
research & development
for various reasons. By doing so following are the various
benefits
that they can achieve:
Improve Competitiveness
- Focus on core competencies
- Increase flexibility to adapt to the changing environment
- Improve customer satisfaction
- Access relevant skills and expertise
- Improve credibility and image through association
- Quickly ramp up business operations and product/services
offerings
- Serve larger markets
Increase Control
- Bring operational efficiency
- Improve process performance
- Monitor organizational activities
- Transform or restructure organization
- Reduce responsibility and liability
- Better risk management
Reduce Costs
- Access higher-level human resources at lower cost
- Obtain advanced technologies without significant upfront
costs
- Acquire innovative concepts and products
- Capitalize on low cost structure of the provider
- Release capital and reduce financial costs
- Reduce operational costs
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