Benefits of outsourcing
Is outsourcing advantageous or disadvantageous? In recent times, outsourcing has become the cause of debate across the globe. Nowadays, companies are choosing outsourcing for varied reasons like cost-effective services, increased efficiency, increased 
productivity, shared risks, reduced operating costs, increased quality and better services. India is providing wide range of outsourcing services across the world. Outsourcing helps companies in rationalizing their costs and gives a competitive edge to their organization.
Recently, this trend has caught up Intra Country also whereas many companies have started outsourcing their adhoc projects/ one time assignments to free lance companies. There are many advantages for the same. Few are
1: Companies can now save their operating costs by minimizing them through outsourcing. India has a large pool of technically practiced manpower which helps in providing cost-effective services.
For example; A small enterprise like a doctor need not keep a full time accountant for its service tax returns. They can hire a company and give only 25% of a manpower cost per month to keep up its legal reports intact.
2. Outsourcing to the companies assures that the best knowledge and software would be used for the services at lower rates.
In the above example, the individual accountant may not be aware of the latest developments in its field but the outsourcing company would be
3. The seasonal operations that are in demand can be easily done through outsourcing.
For example; at the time of tax deposits, many big companies fall short of accountants in account departments. To overcome this, companies go for outsourcing for a fixed period of time at a consistent cost. Similarly, if a company wants to get some data loaded into soft form from hard copy, rather than hiring 10 people for 6 months and then thinking what to do with them after 6 months, they can simply take help of outsourcing company without incurring long term liabilities of man power.
So, Outsourcing is here to stay in a big way.
Contributed By
Gaurav Gupta
Date: 8th March, 2010
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