Its nice to post the continuation of my earlier article. Hope its interesting. Let me hear your comments. Lets see the benefits and which are all the way the offshore and Outsourcing services contributes to the Business.

Economic Benefits:

Cost saving are to be justified as part of any outsourcing program. Cost savings of 10% may be nonstarter, but savings of 20% or more usually open serious discussions. Customers should ask bidders where these saving will come from: Lower capital investments; lower operating expenses; cost avoidance / minimization; improved cash flow and working capital; high fixed costs converted into lower variable costs; on - demand services and pricing, multishore labor arbitrage or other areas.

Strategic Benefits:

Knowing how outsourcing will drive revenue and profit growth, while supporting the strategic business plans is a key issue. Customer need to ask bidders how they would provide better management information, support new product / service development, facilitate market entry and speed - to - market and enhance the level / quality of service to customer / end users. Customers also need to know how the department would be transformed into a higher - performance organization, thus gaining a greater competitive advantage.

Operational benefits:

Streamlining operations and delivering economies of scale and processing efficiencies is another critical aspect. Providers need to quantify the benefits of automating and re-engineering the business process and standardizing them on common technology platforms. They also need to know the benefits of best practices, benchmarking and continuous improvements.

Technology benefits:

Customers need to know how service providers will collaborate with them to optimize their IT infrastructure and investments; how they will gain access to the providers state - of - the - art systems - Hardware, software, networking, templates and toolsets. They also need cost-benefit analyses of outsourcing certain technologies and implementing new systems and Web-based applications, while also knowing how these new technologies would drive innovation and transformation.

HR Benefits:

Will outsourcing reduce headcount and labor costs while also lowering HR administration, recruitment and training costs is an area of concern. Clients need to be aware of the providers plans to hire in-scope employees, and provide comparable compensation / benefits as well as new career opportunities.

Risk-management benefits:

An assurance that the outsourcing program will work effectively with low / no risk - be it operational or career risk - is at the core of the outsourcing arrangement. Mitigate risk by knowing the governance structure, functions of the program management office, internal controls and risk-management policies and programs of the provider.

Customers can better select providers by asking for substantive value propositions are likely candidates in delivering the value-adds promised. So grasp the outsourcing services wherever it arises, provide the best solution and the support to the buyers (Organizations). Lets grow along with the Industry grows. Be retain good people each other. In the market place freelancers can show their skills to get in place with potential buyers forever visa-vise.

Am inviting everyone to for the Outsourcing world. Experience fully the services and support by many market places over Internet. Post your comments to rajan@sslance.com for more details visit us www.sslance.com