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Outsourcing in today's world is seen as a strategic management option rather than just a way to cut costs. It helps achieve the companies their business objectives through operational excellence and an edge in the market place. Every company today, has one or more of its services outsourced so that it can focus more on its core competencies. Outsourcing's emerging power as a business tool of unique versatility and flexibility is undoubted. Outsourcing

Resources of the companies need to be focused on core business functions so the non-core functions need to be outsourced. Outsourcing gives you the right combination of people, processes and technology to operate effectively in the Global market place without burdening your time and budget.

This is the reason why more and more companies are showing intrest in outsourcing their activities to various offshore locations.

Companies outsource in order to achieve the following benefits:
  • Financial Savings.
  • Technical Abilities.
  • Market Agility.

Say for example most IT companies nowadays outsource their Human Resource procurement through placement agencies that help them to procure the right skilled people rather than the companies themselves looking in for suitable manpower in the market. These Placement Agencies who possess the core competence in the field of Human Resource Management justifies the company's decision to go up with the Human Resource they offer vis-a-vis the work expected out of it.

The benefits gained by the client on a short-term basis would be:
  • Ability to focus resources and attention on core business initiatives.
  • Reduction in headcount and attrition rates in the outsourced function.
  • Re-skilling of remaining staff with better and more marketable skills.
  • Refinement of project management, risk management, and service delivery skills.
  • Implementation of demand management and service delivery disciplines.
  • Optimization of systems management and support processes.
  • Access as needed to specialized resources.
Typical long-term benefits include:
  • Predictable results-based expense for the outsourced function over the life of an outsourcing agreement.
  • Joint and proactive problem solving and innovation.
  • Superior management of the business application portfolio.
  • Enhanced career opportunities for client staff, based on sophisticated.
  • Management, contracting, and outsourcing integration skills.
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