Question

MIS assignment

Describe some of the advantages of outsourcing internationally?

Answer 1

Outsourcing is the process by which countries or outsourcers outsource it's business processes to its outsourcing partners where there is cheap service. Outsourcing helps in increasing business efficiency and cost advantage due to cheap labor in other countries where the business has been outsourced.

Outsourcing is of two types. They are:-

• Back office outsourcing - this include internal business function and organization services.. Example- billing.
• Front office outsourcing - this include customer service and deals with customer interaction.. Example- marketing.

The business reasons behind the push to outsource include:-

• It gives cost advantage to outsourcer.
• It helps in increasing the business efficiency.
• It saves operational costs.
• It helps in employing apt talent for business processes that can help in meeting the goals.
• It can save money on infrastructure and technology.
• It helps in providing better customer service.

The main advantages of outsourcing include:-

• It helps in cost saving and time saving by outsourcing the business activity to the third party. In order to perform particular activity, organization needs to recruit, train, develop employees with specific skills which require both money and time. Outsourcing this activity to third party will help the organization to save money and time and to utilize the same on core business. Example - company outsourcing the telemarketing to third party who are expert in this field.
• It helps in improving the speed and efficiencies of the business process that is outsourced. The third party perform that particular task that has been outsourced by the organization as they have the skills that is required to fulfill that specific business activity. Since they are expert in this field, it will help in improving the the speed and efficiency of the process. Example - helpdesk service are being outsourced to provide fast and quality service to the customers.
• BPO provides accessibility to advanced technology. This helps in improving the quality of service because of the latest technology integrated in business process. This makes the organization efficient and effective. Example - company outsourcing market research activity to the third party which use latest technology to provide fast and accurate results.