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Q: Why are more companies choosing to outsource work?
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Why do organizations outsource their business functions?

Because foreigners will work for peanuts.


What is the difference between business process outsourcing and information technology outsourcing?

OutsourcingOutsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas. There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcingoutsourcingoutsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers and have fewer overhead expenses to worry about. OutsourcingOutsourcingOutsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined, and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcingoutsourcingoutsourcing is a cost-effective way to start building foundations in other countries. There are some disadvantages to outsourcingoutsourcingoutsourcing as well. One of these is that outsourcingoutsourcingoutsourcing often eliminates direct communication between a company and its clients. This prevents a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcingoutsourcingoutsourcing may lead to delayed communications and project implementation. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly. While outsourcingoutsourcingoutsourcing may prove highly beneficial for many companies, it also has many drawbacks. It is important that each individual company accurately assess their needs to determine if outsourcingoutsourcingoutsourcing is a viable option. A combination of high overhead in the United States and strong cultural ties between the domestic and Asian information technology industries have led many companies to outsource labor-intensive software programming to Asia and Eastern Europe. India has always been a major player in information technology (IT); they even make their own supercomputers for predicting monsoons. It wasn't until the Y2K bug emerged that the need for legions of cheap programmers really arose, however, and American companies began to see the potential for outsourcing overseas. After Y2K the IT service industry exploded, with American companies outsourcing everything from data entry to customer service to India and other Asian countries. India was a natural choice for outsourcing. Many American technology companies were either created by or employ non-resident Indians (NRIs) or Indian-Americans who still have strong ties to family and friends in India. This cultural bridge combined with the vast pool of cheap, technically skilled, English-speaking engineering talent produced by India's engineering colleges creates the perfect environment for information technology. Despite its distinct advantages for companies looking to outsource their IT services, India's volatile political climate and rampant corruption present problems. Some of the 185 Fortune 500 companies that outsource software to Asia are choosing places like Vietnam or China with more predictable politics and less corruption. Other companies that outsource their customer service are finding that their customers prefer the Americanized English of the Philippines to the British English that predominates in India, though all of these countries have their drawbacks, from censored Internet lines in China and Vietnam to Muslim militancy in the Philippines. Despite the hiccups the IT service industry continues to grow as the software industry becomes more competitive and U.S. companies try to reduce overhead. The Asian IT service market is still in its infancy, but by 2008 industry think tank Nasscom-McKinsey predicts a $17 billion IT service industry in India alone.


What companies offer work at home agent positions?

Many companies offer work at home agent positions. Some of these companies that offer these positions are travel agent, insurance, and real estate companies.


What business companies offer work from home programs?

Companies that offer work from home programs are TeleWork, LiveOps, Salesroads and ArRecovery. Other companies include TeleReachJobs and CallCenterOptions.


Where does a businessman work?

Oil companies

Related questions

Why do companies outsource franchise sales?

Many companies outsource franchise sales because the sales work would be done by someone else, but they reap the benefits. Many companies do this to take some pressure off themselves.


What is outsource employment?

When you outsource work, you call your workers as outsourced workers. Only those you hire in-house to work in your office can be called employees. There is no such thing as outsource employment; they are either employees or contract workers. -Outsourcing employment comes up with greater and better opportunities. Definitely, outsource work is when your worker is/are from outsourcing companies or even freelance people.


Is Apple Inc a England company?

No, it is in the USA. Like other companies they do outsource some work to other countries.


What is telecom outsourcing?

Telecom outsourcing is a term too desribe a company using another for there telecom work. It is common for US companies to outsource this work.


Are there any serious free work at home jobs?

Some companies do outsource work to employees at home. People should always be cautious about applying for work at home jobs, and should check a companies reputation before applying for work with them.


Where can I find information on outsource software development?

Do you wish to develop the software for companies who outsource their product, or rather work for a company that outsources software? Knowing the proper direction of your motive, start your research in software companies based out of India. India seems to have the niche on a large pool of software companies that outsource.


How do you get the outsourced projects?

Start out by talking with various companies and getting a feel for their needs and go from there. Take on an outsource project from them to start and see how the dynamic is. If you mesh well together, perhaps they will feed you more work.


Why would a company choose to outsource their help desk?

Most companies outsource their help desk to outside countries simply because it is cheaper to pay someone in a country like India for the same work they would be getting in the United States.


Should property management business set up its own cleaning service or outsource?

If you have big business and every day you need to arrange for cleaning, then it will be more profitable if you have your own cleaning services as compare to outsource and if you have less work of cleaning services then its better to outsource.


Do kpmg outsource their work?

Yes, KPMG outsources quite a bit of their tax/audit work. They are also preparing to outsource the vast majority of their internal IT


Does American Apparel outsource their products to sweatshops?

"No, American Apparel is proud of the fact that they do not outsource their clothing work to what could be considered sweatshops. They do outsource. Just not to sweatshop type factories."


What kind of training is needed to work in it outsourcing?

If you are helping companies outsource you would have to know about the business being outsourced, personnel and HR, and something about employment laws in the country you will be outsourcing to.