Why outsource?

The most prominent reason for outsourcing is to reduce overheads, but it has also come to light in recent times that outsourcing companies can, more often than not, also provide companies with a higher standard of service than what they’re able to achieve in-house.

Whilst traditionally outsourcing was feasible in a limited number of fields, most notably accounting and manufacturing, over the years more and more services have become available and nowadays practically any activity that can be performed in-house can be outsourced, and as mentioned above, often more cost-effectively and to higher standards.

Virtual services: Outsourcing at its most beneficial

The days of traditional offices are numbered it would seem, seeing that more and more businesses around the globe are reducing their dependence upon the traditional administration and receptionist setup and are opting to utilise the services of virtual assistants, or alternatively, companies providing virtual assistance services.

Reducing overheads is one of the most prominent reasons for this behaviour on the part of business entities because they are able to reduce costly overheads in a number of ways.

Firstly there’s no need to hire fulltime staff, and therefore pay fulltime benefits and salaries, secondly they can reduce the amount of office space they hire, further reducing their overheads, and thirdly, they can access administration and receptionist services that are overseen by a company that specialises in the provision of such services and therefore takes care of quality control, training and the infrastructure that makes such services possible in the first place.

What services are available?

As the scope of virtual services expands so too does the pool of services that businesses are able to access. The list of services has now expanded to the point in which listing all the services available would prove exhaustive, so here are a few that are commonly utilised by business entities.

–       Admin and reception services including phone answering and mail forwarding

–       Bookkeeping and accounting services

–       Conference, meeting and travel arrangements

–       Digital services including digital design and marketing

–       Event planning and related promotional activities

Home based businesses, start-ups and virtual services

Some of the most prominent advocates of virtual services and their benefits are home based businesses and start-ups, businesses that are just establishing themselves and are looking at ways to keep their operational costs low until they are able to expand, though having said that, many start-ups continue to utilise virtual services after they have expanded their client base and have greater cash flow to work with.

Virtual offices are a prominent example of virtual services that are utilised by home based businesses and start-ups, for in addition to providing them with the services that they require, most notably admin and receptionist duties, as well as business support services, they’re also able to impart an image of professionalism to their client base by working from an MWB business centre with a prominent business address. This proves very advantageous for home based business and start-ups, for if they provide a residential address as their business address they’re liable to not be taken seriously, and there’s something inherently shady about PO boxes that most businesses understandably try to avoid.

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Through dedicated offshore outsourcing, a startup can get access to the outstanding IT talent pool in India. Unlike traditional outsourcing model, this method is more transparent, and gives better control to clients over entire process. Clients have the authority to hire or fire their employees, manage and schedule the work, and direct project development. Moreover, instead of spending heavily on building and managing their own infrastructure, a startup gets remote IT development center with all facilities it needs.

Availing dedicated IT outsourcing services will benefit startups in many ways. Some of those are listed below:

• Startups can focus on core business activities
• Build up strategies that can increase client satisfaction
• Improve the project development process
• Gain Flexibility to adapt to the changes in business process
• Form a firm base for continuing development
• Cut costs and avoid large capital expenditure
• Get quality workforce at affordable rates

These benefits are only the tip of an iceberg. Companies can explore for more benefits as this operational model is highly flexible and supports innovation in outsourcing processes. New generation outsourcing services are designed to cater to the IT requirements of small to medium companies. Therefore, dedicated our offshore outsourcing solution will act as a catalyst of growth in a company’s initial stage. Thus, a startup company can focus more on the business operation, produce more growth, and try hard to get an edge over competitors.

Nevertheless, up to now, the problem with offshoring is the shortage of good service providers offering exclusive Offshore Development Center (ODC) and support to Small and Medium Businesses (SMB) and startup firms. Even though, dedicated offshore centers can be a feasible choice for small enterprises to start and progress, most outsourcing services could not be easily accessible for them due to huge setup fees, maintenance cost and other complex red-tapisms that are hard to deal with. In addition, conventional outsourcing never gives adequate control to clients in hiring employees, team management and project development. The offshore vendor controls everything, and thus, there was a lack of sufficient transparency in operations.

But after the downturn faced by Outsourcing industry in 2012, companies are going through a complete makeover. The focus has been shifted from cost-reduction to nurturing quality and transparency in services. Companies are innovating new outsourcing models that will be more viable for the business development for the small to medium enterprises. The features of the new models are designed to overcome the drawbacks of traditional offshoring to make outsourcing suitable for clients at any financial level. So, now on, startups can start using offshore outsourcing for a quick but steady progress in their businesses.

Author: Gigi J Kizhakkechethipuzha – Follow him on Google+.

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