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What is outsourcing ?

Jun
16

The internet changed totally the way we do things and interact. Do you want a software program ? No need to build your own software development firm, you can outsource the work!

What is outsourcing ? Outsourcing is a business practice in which services or job functions are farmed out to a third party. In information technology, an outsourcing initiative with a technology provider can involve a range of operations, from the entirety of the IT function to discrete, easily defined components, such as disaster recovery, network services, software development or QA testing. Companies may choose to outsource IT services onshore (within their own country), nearshore (to a neighboring country or one in the same time zone), or offshore (to a more distant country). Nearshore and offshore outsourcing have traditionally been pursued to save costs.

Periods of high employee turnover can add uncertainty and inconsistency to a business. Outsourcing provides a level of continuity to the company while reducing the risk that a substandard level of operation could bring to the company. Example: Your human resource manager is on extended medical leave and her two administrative assistants are about to leave for new jobs in a short period of time. Outsourcing the human resource function would reduce risk and allow the company to keep operating while the manager is unavailable. It will give you ample time to make sure you hire the right new assistants.

Offshore outsourcing to a country like Bulgaria, which is on a different time zone, gives you the added advantage of making full use of your 24 hour day. Your outsourcing partner can take over and continue your work even after your employees go home. They can complete critical tasks and send it back for your review the next day. Outsourcing certain independent tasks, allows your business to maintain a financial flexibility when there is an uncertainty in demand. You can scale up or down comfortably. At a much lower cost, offshore outsourcing provides additional benefit of running your business in full throttle even during off season and holiday months.

The most obvious and visible benefit relates to the cost savings that outsourcing brings about. 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.

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CodeCoda is an innovative global IT and BPO services, solutions and Advanced Software Development provider, in one of the fastest growing industries worldwide. We were founded by IT Veterans to provide a stable way of working for themselves and being true to their understanding about true customer dedication and technical excellence. Headquartered in Dublin, Ireland and with a production facility in Plovdiv, Bulgaria, CodeCoda provides reliable IT Outsourcing services in a variety of high-tech technologies, ranging from AI to Custom Web Development. We operate on a global scale, and work with Small and Medium size companies up to Fortune 500 enterprises, ranging over a variety of industries, normally on contracts that last longer than a year.

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Source: https://codecoda.com/en

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