Merits and Demerits of Indian Offshore Outsourcing

Merits and Demerits of Indian Offshore Outsourcing

Outsourcing has been successful in India as the merits of outsourcing overshadow the demerits of Outsourcing businesses to an offshore location. This may not be applicable to all parts of the Globe and to other offshore destinations across the whole world.

The benefits of outsourcing far outweigh the disadvantages of outsourcing. Monetary benefit and cost cutting are not the only advantages of outsourcing. There are a lot of other merits as well as demerits. Let us look into them in good detail.

Cost Benefits

Cost related benefits are, however, the first and foremost benefit of Offshore Outsourcing. Companies had been outsourcing time consuming support services for a considerable period of time before starting to outsource high-end processes to India. The cost effectiveness in outsourcing back-end support services has been applied on high-end services. This saves enormous costs for the company that outsources projects to offshore destinations.

Increased concentration on mainstream business

Outsourcing leads to saving a lot of managerial efforts, time and cost to concentrate on research and development and core products and services of companies. Concentrating more on the main business streams will lead to increased returns.

Alternative Hiring Options

While Outsourcing to Offshore destinations, you have a lot of options in hiring. You can hire according to what the project demands. Not all projects are similar and so, you may want to hire resources on a weekly, monthly, and annual basis depending upon the cost and duration of the project. You choose offshore destinations to reduce costs and these hiring options will prove to be efficient for you.

Some of the demerits of Outsourcing include:

Transfer of Management and lack of supervision You will have to trust the offshore company and entitle almost 80% of ownership to that company. You do know little about the management and policies of the offshore company than to take on-paper' documents as corroborating of their track record. You will reap the benefits only after delivery of the work.

Creates necessity to disclose Intellectual Property

If you outsource, you will have to let the other company know of inside information, plans and future actions to some extent. Non-Disclosure Agreements are very important in protecting company related information.

Looking for a outsourcing company in India? we do have a professional team offshore outsourcing India. For further assistance check out our website.

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