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The Cost Factor and Outsourcing – azurewave technology

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It is easy for clients to confuse the cost of outsourcing their work with the amount of money they will save through outsourcing their work. However, the cost of outsourcing does not necessarily reflect the amount of money a client can save by outsourcing, and this false idea of outsourcing can lead clients to choose an outsourcing company that might offer very low prices only to prove inefficient, thus making it a more expensive venture than expected.

Performance and productivity are extremely important factors to consider while outsourcing your work, due to the fact that offshore outsourcing requires a highly efficiently working system since any incompetence regardless of how small may be expensive to remedy. Therefore, an inefficient system undermines the basic objective of the outsourcing process, since you will have to reinvest more money to achieve the desired result.

Cost effectiveness of outsourcing your work can only be determined after a satisfactory result has been achieved by the client; and the overall cost effectiveness of outsourcing your work should be calculated by considering firstly the overall cost of outsourcing, then the overall efficiency that underlines the outsourcing process, along with the efficiency of the outsourcing company with whom the client outsources work, and finally the actual result of outsourcing work.

Method of Outsourcing

The method of outsourcing adopted by the client should be compatible with the client’s business.

Clients should also consider and evaluate how the outsourcing company implements its business model to maximise cost effectiveness, by researching how the outsourcing company works, because even though similar companies may offer similar services, their implementation process might vary and may lead to inefficiency and poor results.

Outcome Defines Success

The results achieved after outsourcing your work will ultimately determine the cost effectiveness of the outsourcing process. Excellent results which cost slightly more is considered a success as opposed to satisfactory result costing less, since in the second case; more money would still be required to be reinvested to achieve better results.

Therefore clients should pay attention to the final end result achieved by the outsourcing company rather than cost of outsourcing your work, because only then would an overall estimate of the cost effectiveness of the outsourcing process be determined.

Quality vs. Quantity

 

Many times the reason why it costs less to outsource with some outsourcing companies is because their capabilities are limited. Therefore it is important for clients to carefully examine how the outsourcing company functions and not take their services at face value. Again, one of the best ways to determine if the company is capable of delivering what it is required is by evaluating the end results. Only if the outsourcing company can achieve optimum results, then only can you judge outsourcing through that company as successful. Therefore the cost of outsourcing does not necessarily mean saving more money, clients must be able to think beyond the cost cutting and cost saving ability when outsourcing, because even if it initially costs less to outsource through one company, if they deliver less than satisfactory, it will cost even more to achieve what you actually want.

Losing Jobs to Outsourcing

Offshore outsourcing has received its fair share of criticism and negative reviews, due to the misconception that outsourcing can negatively impact the local economy and therefore result in loss of jobs of citizens.

Although many critics have argued for outsourcing in the various realms including those in the corporate world and the wider economic forum, there has been little focus however, on one of the most fundamental questions which companies face, that drives them to outsource their work to places such as India. The main question is what if a company is just unable to hire local employees?

There are many reasons why companies may not be able to hire local professionals therefore leaving them no choice than to outsource their work. Firstly, a company might be unable to afford to hire locally; this is usually the reality for many small business just starting out. Therefore, outsourcing not only significantly reduces the cost of employees’ salaries, but it also eliminates the cost of employment tax, recruitment costs and insurance. This rationale is also applicable during an economic recession, since during a recession it will become even more difficult for companies to afford hiring locally if they are to sustain. So if the company itself cannot survive or grow, then the already locally employed workers will be out of jobs as well, plus, without growth or profit, companies will not be capable of reinvesting in new jobs.

Another reason why companies may not be able to hire local employees is because of location, in which there is a shortage or unavailability of qualified or technically skilled workers. In this case these companies would be forced to outsource their work offshore.

It must also be understood that jobs have to exist first before they could be “lost” to outsourcing, however, because a company is not outsourcing offshore does not mean that they will create new jobs and hire locally. So it is a misconception that outsourcing leads to the loss of jobs locally.

Outsourcing nevertheless aids companies to survive, sustain and grow; therefore creating more jobs locally, because if the company itself cannot survive, how can jobs locally or otherwise exist?

Outsource Any Kind of Work with Sundance Technologies

India is known for being the world’s leading country for outsourcing. It is also well known for having a hugely qualified and technically skilled workforce. Therefore, it is quite understandable to ask why you should outsource with Sundance Technologies.

 

Sundance Technologies however, is not just about outsourcing your work offshore; we take care of the entire offshore outsourcing process. We handle various outsourcing jobs from web development, to content writing and legal recording to back office jobs.

Our wide range of services offered from one place is far more than a client can get from a freelancer. Sundance Technologies also helps you to hire only the best most qualified employees who will be dedicated to your work on a full time basis.

Apart from a highly qualified and skilled workforce, Indian employees in all fields are proficient in English and are equally qualified as their counterparts in the US and Europe, which enables us to outsource practically any kind of work in any field. Also, because of India’s stable government and reliable judiciary, it is a safe environment to offshore your business.

Outsourcing with Sundance Technologies allows you to tap into the vast talent pool available from all over India, where you can find a dedicated full time employee who fulfils all your requirements. In addition to this, the client has control over the hiring and working process of the Sundance Technologies offshore employee just like they would be able to manage their staff in their office.

Sundance Technologies also provides your offshore employee with all necessary infrastructure and equipment so you can be assured of a high level of professionalism and efficiency from both your  offshore employee and Sundance Technologies.