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Why Outsource? Page [1]
“Companies outsourcing IT requirements outperform the S&P and NASDAQ
during recessions” Morgan Stanley Dean Witter.
Outsourcing is a means to partner with
service providers, like PINNACLE, that can handle specific business
processes - better, faster and at a lower operating cost. To reduce
costs, while at the same time maintain quality products and services, in
this era of rapid technological change and short product life cycles,
requires your company to specialize in what it does best and
de-emphasize management attention from business processes that do not
directly impact the business - OUTSOURCE.
The top reasons cited by companies for choosing outsourcing are
summarized below:
- 29% - Cutting operating costs
- 13% - Avoiding needed investment
- 29% - Focusing on core business
- 14% - Inability to staff
appropriately
- 14% - Upgrading to current service
levels
Outsourcing to India
Some of the key benefits to outsourcing to India are:
- Increased ROI
- Significant cost savings, up to 80%
in certain cases.
- 12-hour Time Difference - reduced
response time, deploy solutions faster and better use of resources
- Largest population of
English-speaking graduates in technical, marketing, engineering, and
medical fields.
Resistance to Outsourcing?
Organizational resistance has been noted as the single biggest
impediment to outsourcing, not only because of skepticism about whether
it can work but also due to the resulting uncertainty and the added
perception that outsourcing leads to job loss.
When done right, outsourcing results in little or no job loss. Changes
are required in the ranks of the technical personnel who can either be
transferred to the outsourcing company or need to be replaced, most
likely due to the company's technology adoption initiatives where some
skills become obsolete.
Middle management has several years of accumulated business expertise
and has operational oversight responsibility even after outsourcing.
Since they no longer have to deal with day-to-day technical issues at a
detailed level, it frees up time to interact with business units as well
as analyze how the increased technical resources can be used to impact
business positively.
THE BOTTOM-LINE
Outsourcing in the best sense allows companies to operate at a higher
level of revenue without having to see a corresponding increase in
operating costs.
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102, Paradise Plaza,
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911-912 Synagogue
Street, Camp,
Pune-411001 (INDIA)
Tel : +91(20)-2614.16.82
: +91(20)-2614.16.83
Cell : +91-9823.00.53.26
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Romana Circle,
Bucharest, Romania.
Tel : 40(21)-317.42.98
: 40(21)-211.78.31
Cell : 40-745.348.725 or 765
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Pinnacle Technologies (P) Limited, Pune- India [2004-05] |
Europe, USA, India |