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Why Outsource

The need to outsource arose from the rapid growth in the IT enabled services sector which is driven by the following market factors:

Core activities;Companies and business enterprises worldwide are evaluating their operations with a view to cut costs due to an economic downturn in their country of origin.

In this process they look upon Business Processes outsourcing as a strategy to outsource those processes which are “non core” though critical to the long term success of any business, thereby improving profitability and adding to the shareholder’s value

Out of the above , the top three process areas currently outsourced are the following.

• Human Resources

• Finance & Accounting

• Administration

These processes are considered by many as “non core but critical” and require considerable investments in data processing and administration and hence are most suited to Business Processes outsourcing

With mergers and acquisitions and alliances taking place on a daily basis,managers are faced with issues of integration and consolidation, because of duplication of business processes.Thus ,there arises a need to evolve a single strategy and BPO is an option available to such companies who are in a continuous state of change.

Skilled labour:
Industries worldwide are finding it difficult to attract and retain qualified and skilled labour,not only in areas of high technology and biotech but also in “non core” areas of HR,Finance & accounting,logistics,marketing etc.

BPO enables them to meet their needs by hiring a third party who the knowledge of best practices in their own sector.

Technical evolution:
The continuous and fast paced evolution in business and technology compels business to associate with third parties who are leaders and experts in technology and business processes and are thus capable of effectively handling changes in environment.
BPO is a way to gain access to the world class processes in technology while keeping internal accruals focused on the core aspects of business.