2. Offshore outsourcing, a type of business outsourcing, where IT-
related works are shared to the areas of world where there is both
political stability and lower labor costs or tax savings.
Three most important justifications in outsourcing services to other
areas beyond geographical boundaries are
• Cost reduction
•Internationalization
•Inadequate supplies of domestic resources
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3. Benefits of Offshore Outsourcing
“Outsourcing” allows reducing costs and enhancing efficiency by shifting portions
of work to suppliers rather than carrying it out internally.
Cost Effectiveness- Outsourcing assists in providing quality services at effective
costs.
Risk-sharing- The risks can be shared in outsourcing project. The specialized
vendor helps to plan the risk mitigating factors in an effective manner.
Access to new technology- Being the professional service provider in the industry,
the companies are always updated with innovative and upgraded technologies.
Improved Focus- Outsourcing allows you to focus on your core business needs
instead of worrying about internal resources to reach your goal.
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4. Types of Outsourced Services
Outsourcing is the process by which an organization contracts with another
individual
or company to get some of its work done .
Two Types of Outsourced services are
1. Technology Services
2. Business Process Outsourcing
1. Technology Services include:
∙ Infrastructure
Is the basic physical hardware is used to support the information. Include media,
lines with regards to telephones, cable lines, satellites and antennas such kind of
devices to establish a path of communication.
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5. ∙ Software Application
An organization saves itself from the hiring of extra suitable intellectuals and receives
a fleet of the same from an offshore vendor.
. Web Site Hosting and Development
In addition to web site development, web site hosting agreements are put in place to
provide assurances regarding the protection and privacy of the data, the security of
the web site, and the type of technology the site will use to prevent unauthorized
access to content.
. Ecommerce
Ecommerce supports the development of the business resulting in finances. The
success of e-commerce is directly proportional to an organizations development.
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6. 2. Business Process Outsourcing includes:
. Call Centers
Call Centers or the customer contact has become the most essential form of the
business. All contacts can be performed using a telephone and a computer.
. Financial Outsourcing
Financial Outsourcing has formed a huge shape in the global scenario. A Financial
Outsourcing vendor, specializes in this field, keeps the books, does the auditing and
even reported to be reducing the taxations on payrolls.
. Human Resource Outsourcing
The Outsourced Human Resource vendor actually takes care of paying the payrolls,
taxes, withholdings and contributions as well as voluntary contributions to retirement
and medical plans.
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7. Offshore Development Center
An Offshore Development Center or ODC is a dedicated development
center, located outside the client’s premises and is solely engaged in
developing, testing and deploying software solutions and
applications.
The purpose behind an ODC is to take advantages of the
technological know-how of the offshore partner, reduce the
time to market and save on costs.
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8. Benefits of Offshore Development Center
Reduced service costs as compared with onsite development
companies
Full control over the project run, capability to manage it dynamically
Seamless communication with any team member
Back transferred intellectual capital, tangible results
Privacy and confidentiality
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9. Outsourcing Security
Outsourcing Security provides a kind of logical profit. A Security
Outsourcing vendor would keep an employee for self staffing for
each major nature of solution, which enables an Outsourcing
organization to be benefited at the same nominal charge for major
as well as minor cases.
Outsourcing Security helps an organization to stay updated with
the troubles and their bifurcated solutions.
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10. KPO (Knowledge Process Outsourcing)
As evident from the name suggests, KPO or Knowledge Process
Outsourcing typically calls for work that needs higher levels of
involvement from the worker. The worker has to employ advanced
levels of research, analytical and technical skills and has to make
decisions of a higher order .
Data research and analysis, legal services, content writing
and development and database development services
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