Why Outsource?

“Companies outsourcing IT requirements outperform the S&P and NASDAQ during recessions” Morgan Stanley Dean Witter, Feb 2001

Outsourcing is a means to partner with service providers, like i2c, that can handle specific business processes - better, faster and at a lower operating cost. To reduce costs, while at the same time maintain quality products and services, in this era of rapid technological change and short product life cycles, requires your company to specialize in what it does best and de-emphasize management attention from business processes that do not directly impact the business - OUTSOURCE.

The top reasons cited by companies for choosing outsourcing are summarized below[1]: below.

    29% - Cutting operating costs
    13% - Avoiding needed investment
    29% - Focusing on core business
    14% - Inability to staff appropriately
    14% - Upgrading to current service levels
Outsourcing to India
Some of the key benefits to outsourcing to India are:
  • Increased ROI
  • Significant cost savings, up to 80% in certain cases.
  • 12-hour Time Difference - reduced response time, deploy solutions faster and better use of resources
  • Largest population of English-speaking graduates in technical, marketing, engineering, and medical fields.

Click ->here to learn more about Outsourcing to India.

Resistance to Outsourcing?
Organizational resistance has been noted as the single biggest impediment to outsourcing, not only because of skepticism about whether it can work but also due to the resulting uncertainty and the added perception that outsourcing leads to job loss.

When done right, outsourcing results in little or no job loss. Changes are required in the ranks of the technical personnel who can either be transferred to the outsourcing company or need to be replaced, most likely due to the company's technology adoption initiatives where some skills become obsolete.

Middle management has several years of accumulated business expertise and has operational oversight responsibility even after outsourcing. Since they no longer have to deal with day-to-day technical issues at a detailed level, it frees up time to interact with business units as well as analyze how the increased technical resources can be used to impact business positively.

THE BOTTOM-LINE
Outsourcing in the best sense allows companies to operate at a higher level of revenue without having to see a corresponding increase in operating costs.


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