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Functions like Accounting, Payroll Processing, Medical Transcription, Data Entry, Software and Applications Development and much more can be outsourced overseas. Companies can outsource a function if it is a non-core task to the company and if the companies get a significant cost advantage by outsourcing the work. After a company decides to outsource the work, it would need to select a 3rd party service provider overseas who could offer these services at a negotiated cost between the service provider and the client company. Needless to say, the service provider needs to have the necessary expertise and experience to provide the outsourcing services to the client company in the USA. A company should ideally do a feasibility test either by himself or through an offshore outsourcing consultant to determine the 3rd party service providers' capabilities and abilities.
There are many 3rd party service providers in countries like India, Philippines, Pakistan, Malaysia who have recognized the demand for outsourcing in the United States of America. Whilst India provides services at a very low cost and has a large pool of English speaking graduates, Philippines commands an excellent infrastructure at its disposal. The 3rd party service providers situated in these countries tap into the advantages provided by the country, combine them with infrastructure and resources and provide services for the functions outsourced to them in a cost-effective and a qualitative manner.
For any outsourcing contract to be successful, it is important that companies realize that Project Management of the work, risk management of the 3rd party service provider and quality management of the work is extremely important. Companies who outsource the work need to be pro-active about these three aspects even before the contract is signed. A lot of the functions that are outsourced may require the company to train the service provider exhaustively before the work could be done. All these factors put together along with the 3rd party service provider's commitment to provide quality services at a low cost will result in a win-win situation for the company which does Outsourcing.
Bottom-line, Outsourcing is good for your organization if it is managed efficiently.
Category: ManagementOutsourcing: The key to reduce costs and increase quality was written by:Author:Ruth CampbellAdded: Sun, 19 Aug 2007 03:24:00 -0400 This Article Has Been Read 316 times View all Ruth Campbell's articlesAbout the Author: Ruth Campbell owns and operates http://www.OutsourcingOnlineGuide.com Outsourcing Online |
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