E-14/20,Vasant Vihar New Delhi - 110057 Tel: +91 11 26154257 Fax: +91 11 26745395

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Benefits of Outsourcing The benefits of outsourcing can be examined from 3 perspectives: Strategic Outsourcing is an effective business strategy to keep ahead of the competition and at the same time, enhances productivity and profitability. Management Outsourcing provides employees with a higher level of skill and knowledge for basic office support functions, thus elevating the quality of work and freeing senior staff for more productive projects. Operational Outsourcing creates exceptional flexibility, allowing you to adjust staff and operations to stay ahead of the market. Outsourcing also keeps you in the forefront of technological advancements in operational systems and equipment-increasing efficiency and responsiveness. The Outsourcing Institute According to The Outsourcing Institute, the traditional tactical and strategic reasons organizations outsource are as follows: Tactical Reasons Reduce or Control Operating Costs Access to outside providers' lower cost structure is one of the most compelling short-term benefits of outsourcing. In an Outsourcing Institute survey, organizations reported that on average they saw a 9% reduction in costs through outsourcing. Make Capital Funds Available Outsourcing reduces the need to invest capital funds in non-core business functions. This makes capital more available for core areas. Outsourcing can also improve certain financial measurements by eliminating the need to show return on equity from capital investments in non-core areas. Cash Infusion Outsourcing can involve the transfer of assets from clients to providers. Equipment, facilities, vehicles, and licenses used in the current operations all have a value and are, in effect, sold to the provider as part of the transaction resulting in a cash payment.

E-14/20,Vasant Vihar New Delhi - 110057 Tel: +91 11 26154257 Fax: +91 11 26745395

Email: info@Kubase.com http://www.kubase.com

Resources Not Available Internally Companies outsource because they do not have access to the required resources within. For example, if an organization is expanding its operations, especially into a new geographic area, outsourcing is a viable and important alternative to building the needed capability from the ground up. Function Difficult to Manage or Out of Control Outsourcing is certainly one option for addressing these types of problems. Outsourcing does not, however, mean abdication of management responsibility, nor does it work well as a knee-jerk reaction by companies in trouble. Strategic Reasons Improve Business Focus Outsourcing lets firms focus on broader business issues while having operational details assumed by outside experts. For many organizations, the "how" issues are siphoning off huge amounts of management resources and attention. Access to World-Class Capabilities By the very nature of their specialization, outsourcing providers bring extensive resources to their clients. Partnerships can offer access to: new technology, tools and techniques; better career opportunities for personnel; more structured methodologies, procedures and documentation; and competitive advantage through expanded skills. Accelerated Reengineering Benefits Outsourcing is often a byproduct of another powerful management tool-business process reengineering. It allows organizations to immediately realize the anticipated benefits of reengineering by having outside organizations, that are already reengineered to world-class standards, take over the process. Shared Risks There are tremendous risks associated with the investments organizations make. When firms outsource, they become more flexible, more dynamic and better able to adapt to changing opportunities. Free Resources for Other Purposes Every organization has limits on the resources available to it. Outsourcing permits organizations to redirect their resources from non-core activities toward activities that have a greater return in serving their clients. By freeing your staff to focus on core competencies, outsourced support functions deliver world-class service and industry best practices that enhance the performance of your entire organization