Why Most Multinational Companies Prefer Outsourcing Their Services?

Multinational organizations are taking the lead in the market with the key called Outsourcing. The external help to their services has proved to be a great extension to their own teams and helped them expand their work in multiple horizons. Most of the organizations prefer taking help from the external providers and some of them are setting their teams in the cost-efficient labor providing countries.

Taking help from the providers has proven more efficient than setting the full team’s off-shore. As per Deloitte’s 2016 Global Outsourcing Survey, outsourcing actually allows companies to lower their overheads. Approximately 59% of businesses surveyed mentioned outsourcing was used as a tool for cost-cutting. But investing in outsourcing is more than just a money-saving exercise.

What are the key benefits of outsourcing?

• Cost-Cutting: Lower operational and labor costs are the most prevalent reasons that enforced organizations from developed countries to outsource. With proper execution, it resulted in a defining impact on a company’s revenue, recognition, and savings.

• Focused Approach: Companies mentioned that outsourcing or offshoring helped them continue focusing on their core business processes while dedicating their tedious time-consuming processes to external agencies.

• Global Reach: Outsourcing also enabled them to tap in to and leverage a global knowledge base, having access to world-class capabilities that were not possible with the traditional business set-up.

• Solving Capacity Issues: They experienced lots of help in freeing up some internal resources that could be put into effective use for other purposes is one of the primary benefits that many companies are facing after opening their doors for outsourcing.

• Enhance Their Service Quality: Many world-class enterprises outsource to gain access to resources that are not available in their confined territories.

• Increasing Revenue: Many times Outsourcing is undertaken cost-saving and provides a surplus capital fund to organizations that could be leveraged in a manner that benefits the company.

• Risk Mitigation: Offshoring especially helps companies mitigate their risks and is also among the primary reasons embarked upon.

• Upgradation: Outsourcing also helped the firms to realize the benefits of re-engineering, revise, and upgrade the project as per the client’s requirements.

• Access to Global Market: Most of the companies outsource to explore and gain access to new market areas that are out of their reach, by taking the point of production or service delivery closer to their end-users.

Why India?

India being an Asian country and filled with passionate youth is a leading provider of outsourcing agencies. It helps in covering the whole time zone issue that multiple organizations face while setting the international businesses. A report cited that among 80% of Europeans and US outsourcing firms ranked India as their number one outsourcing destination when it comes to the expansion of their services.

The labor cost in India is way low than other outsourcing locations and even 350 million people in India speak English, which helps in breaking the linguistic barrier. Other than the cost-cutting the quality of the service provided is also commendable.  The talent pool in India is in its log phase as the employees are well-qualified from the finest universities and maximum of them in the age group of 20-35. Outsourcing services are used by businesses to focus on their competencies rather than managing non-core tasks. And India is also proven to be fully equipped with the latest technologies that help the companies to maintain the pace with the quality of services. 

Why ADI?

ADI is the constant provider of all these services and assisting companies for more than 20 years. Well-equipped and the talented team have generated high-quality work in a committed period of time. In-house training programs ensures the quality of the services we provide. We work as an extension of their own team which is cross-functional and process-centric. We have been providing white-labeled external assistance in the fields of IT, information and creativity.

1 comment

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