Offshore Outsourcing— It’s Not Just About the Costs

On August 13, 2012, in Outsourcing, by Business Development Group
 Companies are now seeking innovative ways of utilizing the outsourcing strategy to improve service quality. As such, other reasons for turning to offshore outsourcing are now gaining importance.

Companies are now seeking innovative ways of utilizing the outsourcing strategy to improve service quality. As such, other reasons for turning to offshore outsourcing are now gaining importance.

As the outsourcing industry continues to grow and evolve as it adjusts to various market trends, so do the factors and reasons that drive companies’ decision to outsource.  Although cost advantage still remains as the main driving factor, recent studies show its diminishing importance among companies that outsource processes to offshore locations.

According to a study conducted by audit, tax & advisory services provider, KPMG, only 70% of businesses are influenced by cost when making their outsourcing decisions, compared to the 83% in the last survey 2 years earlier. The results were found to be consistent with the findings from the Australian BPO Report 2012.

Related Article: New Trends in Outsourcing Strategies

Companies are now seeking innovative ways of utilizing the outsourcing strategy to improve service quality. As such, other reasons for turning to offshore outsourcing are now gaining importance.

Lack of In-House Skill

This is another major driver for offshore outsourcing. Companies are constantly looking for ways for business improvement to provide better quality services to customers. Thus, it is crucial to look for the right skill sets that might not be available in-house.

Related Article: Businesses Outsource IT for Reasons Other Than Cost

Global Reach

Outsourcing provides the opportunity to access the right people, processes and technologies from around the globe. With a global reach for high-quality low-cost talents, companies are able to pass on high quality services to customers, driving business improvement and transformation.

There are many other reasons that drive a company’s decision to outsource and they too are slowly gaining weight as the outsourcing industry continues to grow and evolve. More and more businesses are now leveraging their outsourcing strategies to drive business improvement and improve service quality— it’s simply not just about the cost anymore.

Related Article: The Outsourcing Strategy — Overcoming Resistance to Change

 

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