Off-shore outsourcing company in india

Outsourcing Company functions for reasons that are organizationally driven, improvement driven, financially driven, revenue driven, or cost driven (Outsourcing Index, 2003). Moreover, offshore outsourcing company can be viewed as a component of corporate and industry international expansion and restructuring. A recent McKinsey Global Institute Report (Farrell, 2003) identifies five horizons of the global industry value chain: • Market entry: Entering a country for purposes of market expansion. • Product specialization: Specialization takes place in different locations. Each location may engage in final goods trade with each other. • Value chain disaggregation: Product components are manufactured in a certain location and assembled elsewhere. • Value chain reengineering: Reengineering processes to capture additional advantages from production cost differentials. • New market creation: New market segments are penetrated as a matter of capturing the full value of the company’s global activities. According to another McKinsey study:

effective outsourcing web development implies identifying and managing the ‘natural owner’ of every activity in he value chain. Off-shore outsourcing company arises from the basic reality of the global environment: any company, in any country, may be the natural owner! It can then lead to a drastic restructuring, including ‘unbundling,’ of the companies affected. Indeed, as total interaction costs among companies and industries are changing, companies around the world are reorganizing themselves by providing the answer to their question:

what business are we in?

A firm can use an outsourcing development company to supplement its core competencies, by contracting with outside providers for activities in which the firm has no unique capabilities. This “strategic outsourcing” can generate several benefits: • Extracting the maximum benefits from internal activities, since they represent what the firm does best • Maximizing their competitiveness and protecting or even expanding their market share • Effectively utilizing suppliers capabilities • Decreasing risks, shortening cycle times and fulfilling customer needs

A survey of 500 human resources executives found that: • 92% of the firms that had moved jobs overseas did so to cut costs. • An average of 13% of jobs at each company are already located off-shore and an additional 12% could be relocated within the next three years. • 45% of the 500 firms have overseas operations. • 71% of the remaining companies planned to move some jobs abroad by 2005. • Of the firms who are currently using off-shore labor, 29% began doing so in the years 1995-1999, while 43% began in 2000-2003.

About The Author Shane is the head of content department of Param Network, a Delhi based IT firm that offers a one stop solution for all your offshore outsourcing related needs for more information visit: www.paramnetwork.comcontact us : info@paramnetwork.comMb :9212306116