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  Outsourcing Overview |
| Outsourcing Benefits |
| Why Outsource to Aalpha |
| Why Outsource to India |
| Offshore Staffing |
| Outsourcing FAQ's |
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Just as contract manufacturing
compelled transformation in the high technology industry, software
offshore outsourcing is transforming organizations across an expansive
array of industry and services sectors worldwide.
The value in outsourcing is proven already.
The exciting growth that this business is experiencing today is too
powerful to resist even for potential political problems with the
outsourcing destinations. For large multinational companies driven by cost
efficiency, need for excellent talent and turn around times, India has
proven to be competent and reliable over a significant length of time.
Their confidence is illustrated by an increase in straight through
processing-related functions to India. Today Western and European
enterprises are more flexible about the kinds of partnerships they choose.
There is great openness and willingness now to accept other types of
outsourcing options, such as joint ventures and nontraditional third-party
providers.
Check this:
The outsourcing model is already being leveraged by 40% of the Fortune 500
companies including Lucent, Oracle, Microsoft and Motorola. The offshore
outsourcing model can bring in cost savings of 50% - 70% depending on the
mix of onsite and offshore resources. The main drivers for this phenomenon
is the pressure to reduce costs, improve efficiency and increase
flexibility in the back office of almost every major industry in the West
and Europe.
Many non-critical functions and, now increasingly even critical areas like
product research and development in many technology sectors, are being
outsourced to low cost, high knowledge destinations.
Factors
Several factors are pushing firms to more outsourcing. Foremost is more
emphasis on controlling costs. Firms start thinking about replacing fixed
costs with variable costs. With an outsourcing agreement based on the
amount of use of the process, the costs go down as volumes decrease due to
flexible contracts.
The second main driver is that regulatory requirements force firms to
focus their technology resources away from supporting some basic
operations. The outsource provider takes on the responsibility of ensuring
that technology is maintained and updated, avoiding the need for
institutions to spend money on updating, maintaining or rebuilding their
processing systems.
Standardization also can promote outsourcing. Third-party or industry
utility services now offer centralized standards-based connectivity,
reducing integration costs and hassles both within and between brokerage
firms. Another standardization process, the move to Web services, makes it
easier to outsource by letting firms expose legacy systems and
applications over networks-and to the outsourcer. |
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