Outsourcing is primarily done to reduce costs. Now a days outsourcing your work can help in many ways such as skilled expertise, lower costs, flexible staffing, increasing efficiency, reducing turnaround time and eventually generating more profit.
More importantly, your business can focus on what it does best and gain a competitive advantage in the marketplace.
You no longer need to invest in recruiting and training expensive resources for your business. Outsourcing companies employ highly skilled resources who are well educated in the respective business areas and are experienced in handling the business needs of companies that want to outsource.
The most obvious and visible benefit relates to the cost savings. You can get your job done at a lower cost and at better quality as well. Due to the difference in wages between western countries and Asia, the same kind of work that is done over there can be done in India at a fraction of the cost. There is a cost savings of around 60% by outsourcing your work to India. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality.
Outsourcing allows operations or departments that have cyclical demands to bring in additional resources when they're necessary. The outsourcing company can then be released when things slow down again, maintaining a company's flexibility.
When you outsource your business needs to an outsourcing company, they bring years of experience in business practices and expertise in delivering complex outsourcing projects. Thus, they can do the job better with their knowledge and understanding of the domain. This leads to an increase in productivity and efficiency in the process thereby contributing to the bottom-line of your company.
Make your service offerings better with high quality deliverables and decrease the lead time it takes for your product to reach the marketplace. Thus you would be faster in getting your ideas converted into products and better at delivering the value-added proposition.