Assignment 8(MIS)

Assuming that i was able to attend a seminar-workshop on information systems planning with some of the faculty members. So first i should give the definition of Outsourcing based on the internet.

Outsourcing of information systems functions has become a frequently chosen
alternative of providing information systems services. This is true across many
industries and all firm sizes. Practitioners have developed a number of guidelines
relating to outsourcing. While many of these guidelines seem plausible their under­
lying economic reasons are often not identified because they are not based on any
theory. We analyze outsourcing of information systems functions using the trans­
action cost economics framework. The framework allows us to incorporate pro­
duction as well as coordination costs in evaluating the outsourcing option.
IS outsourcing, organization economics, transaction cost, markets, hierarchies,
asset specificity.
Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider. The client organization and the supplier enter into a contractual agreement that defines the transferred services. Under the agreement the supplier acquires the means of production in the form of a transfer of people, assets and other resources from the client. The client agrees to procure the services from the supplier for the term of the contract. Business segments typically outsourced include information technology, human resources, facilities, real estate management, and accounting. Many companies also outsource customer support and call center functions like telemarketing, CAD drafting, customer service, market research, manufacturing, designing, web development, print-to-mail, content writing, ghostwriting and engineering. Offshoring is the type of outsourcing in which the buyer organization belongs to another country.

Outsourcing and off shoring are used interchangeably in public discourse despite important technical differences. Outsourcing involves contracting with a supplier, which may or may not involve some degree of offshoring. Offshoring is the transfer of an organizational function to another country, regardless of whether the work is outsourced or stays within the same corporation/company.

With increasing globalization of outsourcing companies, the distinction between outsourcing and offshoring will become less clear over time. This is evident in the increasing presence of Indian outsourcing companies in the United States and United Kingdom. The globalization of outsourcing operating models has resulted in new terms such as nearshoring, noshoring, and rightshoring that reflect the changing mix of locations. This is seen in the opening of offices and operations centers by Indian companies in the U.S. and UK. A major job that is being outsourced is accounting. They are able to complete tax returns across seas for people in America.

Multisourcing refers to large outsourcing agreements (predominantly IT).[9] Multisourcing is a framework to enable different parts of the client business to be sourced from different suppliers. This requires a governance model that communicates strategy, clearly defines responsibility and has end-to-end integration.

Strategic outsourcing is the organizing arrangement that emerges when firms rely on intermediate markets to provide specialized capabilities that supplement existing capabilities deployed along a firm’s value chain (see Holcomb & Hitt, 2007). Such an arrangement produces value within firms’ supply chains beyond those benefits achieved through cost economies. Intermediate markets that provide specialized capabilities emerge as different industry conditions intensify the partitioning of production. As a result of greater information standardization and simplified coordination, clear administrative demarcations emerge along a value chain. Partitioning of intermediate markets occurs as the coordination of production across a value chain is simplified and as information becomes standardized, making it easier to transfer activities across boundaries.

The Webster's Universal Dictionary meaning of "Outsourcing" is: "A company or person that provides information; to find a supplier or service, to identify a source". It is very important to be clear about what is meant by outsourcing. Outsourcing essentially refers to how things are done rather than what is done. It describes how for example IT services are obtained; not what the services are.

Very simply outsourcing can be defined as a process in which a company delegates some of its in-house operations/processes to a third party. Thus outsourcing is a contracting transaction through which one company purchases services from another while keeping ownership and ultimate responsibility for the underlying processes. The clients inform their provider what they want and how they want the work performed. So the client can authorize the provider to operate as well as redesign basic processes in order to ensure even greater cost and efficiency benefits.

Although the above definition of outsourcing may seem very similar to contracting, it is to be said that contracting and outsourcing are in no way related. Generally in contracting the ownership or control of the operation or process being contracted is with the parent company, whereas in outsourcing the control of the process is with the third party instead of the parent company. So in other words, outsourcing can be defined as phenomena in which a company delegates a part of its in-house operations to a third party with the third party gaining full control over that operation/process.

One way of looking at it is that outsourcing is just a name for already existing practices. Services such as, bureau services, contract programming and project management have been outsourced for a long time. In its present meaning, however, outsourcing refers to a greater level of handing over ownership and/or managerial control than has before been the case.

Companies turn to resources outside their organizational structure usually to save money and/or make use of the skilled professionals. For instance, a company might outsource its IT management because it is cheaper to contract a third-party to do so than it would be to build its own in-house IT management team. Or a company could outsource all of its data storage needs because it is easier and cheaper than buying and maintaining its own data storage devices. A business might also outsource its human resource tasks to another enterprise instead of having its own dedicated human resources staff.




» Account Payable Outsourcing » Application Development Outsourcing
» Advantages of Outsourcing » Back Office Outsourcing
» Benefits of Outsourcing » Business Outsourcing
» Pro And Cons Of Outsourcing » China Outsourcing
» Customer Service Outsourcing » Data Entry Outsourcing
» Disadvantages of Outsourcing » Effects of Outsourcing
» Global Outsourcing » Graphic Design Outsourcing
» HR Outsourcing Company » HR Outsourcing Services
» Human Resource Outsourcing » Information Technology Outsourcing
» IT Services Outsourcing » IT outsourcing solution
» Offshore Outsourcing » Outsourcing Computer Hardware
» Outsourcing Jobs India » Outsourcing Problem
» Outsourcing Statistics » Offshore Outsourcing Consultant
» Telemarketing Outsourcing » Offshore Outsourcing Strategy
» Outsourcing » Strategic Outsourcing
» Outsourcing Business Services » Outsourcing Research
» Job Outsourcing » Outsourcing Fulfillment
» Oasis Outsourcing » Logistics Outsourcing
» Medical Transcription Outsourcing » Offshore Outsourcing Call Center
» International Outsourcing » Human Resource Outsourcing Services
» Accounting Outsourcing » Legal Outsourcing
» Business Process Outsourcing » IT Outsourcing
» Outsourcing American Jobs » Knowledge Process Outsourcing
» Contact Center Outsourcing » Outsourcing in India
» Definition of Outsourcing » Outsourcing Services
» History of Outsourcing » Offshore Outsourcing Research
» Offshore Outsourcing India » Outsourcing to a foreign country
» BPO Business Process Outsourcing » Finance and accounting outsourcing
» Offshore Business Process Outsourcing » Comprehensive Human Resource Outsourcing
» Outsourcing Software Development » Outsourcing American Jobs To Foreign
CountrY

Benefits of Outsourcing
Outsource and take advantage of the benefits of offshore outsourcing are the following:
1. Take advantage of the cost-advantages!

Outsourcing to countries such as India can give you access to cost-effective services. The same services with the same level of quality are offered in India for a much lower cost! This cost-advantage has increased the number of services that are being offered to India. Services such as call center services, teleradiology, medical billing, etc can help you save up to 60% of your total costs when outsourced! Getting access to high-quality services at a cost-effective price is the biggest benefit that you can get while outsourcing. Outsource and reap the benefits of outsourcing.
2. See an increase in your business

Another benefit of outsourcing is seeing a big increase in your profits, productivity, level of quality, business value, business performance and much more. Outsourcing can help you see an increase in almost every aspect of your business. Outsource and see your organization experience an increase in every aspect with these benefits of outsourcing.
3. Save Big!

One of the benefits of outsourcing is that you can save on every aspect of your business and increase your profits. When you outsource, you can save on time, effort, infrastructure and manpower. Since you don't have to invest in infrastructure, you can also save on making unnecessary fixed investments. Outsourcing removes the burden of changing or maintaining infrastructure. You can also save on capital expenditure. Outsourcing can also help you save on training costs, because you do not have to invest in manpower. These savings will help bring about an increase in your revenue. Your organization can also save on investing in expensive software and technologies.
4. Get access to specialized services

By outsourcing you can get expert and skilled services. This benefit of outsourcing has been the key reason why several outsourcers opt for outsourcing. The function that you outsource may not be your core competency but you can find an outsourcing partner who is specialized in that particular business process. Your outsourcing partner will be able to provide more proficient services. This is yet another benefit of outsourcing, because if you perform all your business processes in-house, you will not be able to provide specialized and skilled services. Outsourcing can give you this advantage.

Outsource2india is an organization that offers a wide range of specialized business process outsourcing solutions to global clients. Outsourcing business processes to us has enabled clients to cross-leverage our skills and expertise across industry verticals and technologies to achieve greater efficiency and quality levels in the outsourced process.

At Outsource2india, we have dedicated teams that offer outsourced services across a range of services which include Call center, Data Entry Servicesand Engineering Services, Healthcare Services, Financial Services, Software Development, Research and Analysis Services, Photo Editing Services, Creative Services and Web-analytics Services.

Outsource specific processes to our expert teams and increase your ROI. Contact O2I here.
5. Concentrate more on your core business

One of the benefits of outsourcing is that your organization will be free to concentrate on your core business. By outsourcing all your non-core functions, your employees can be put to better use and you will be able to see a huge growth in your core business.
6. Make faster deliveries to customers

Another benefit of outsourcing is that you can make quicker deliveries to customers. Your outsourcing partner will be able to provide faster deliverables and you in turn will be able to make quick deliveries to your customer. Faster deliveries can also help you save on time.
7. Improved customer satisfaction

With timely deliveries and high-quality services you can impress your customers. Outsourcing can help you benefit from increased customer satisfaction and your customers will remain loyal to your organization.
8. Benefit from time zone advantages

Outsourcing to countries such as India has a time zone advantage. Your night will be India's day. With this advantage, your outsourcing partner can complete critical work and send it to you the next day. Thus, your work is continued by your outsourcing partner even after your employees go home. This enables the work to be completed much faster and gives your business a competitive advantage. This is one of the benefits of offshore outsourcing.
9. Increased efficiency

Another benefit of outsourcing is increased efficiency. Your non-core business functions will be performed efficiently by your outsourcing partner, while your core functions can be efficiently carried out in-house. Thereby you can achieve overall efficiency and see an increase in your profits.
10. Give your business a competitive edge!

Outsourcing can help your organization gain a competitive edge in the market. You can also get access to specialized services for different business processes and thereby provide your customers with best-of breed services. Such strategic outsourcing can give your business a competitive edge among your peers. The benefits of outsourcing can give your organization a cutting-edge in the worldwide market. Outsource and take advantage of the benefits of outsourcing.
11. Outsourcing countries also benefit from outsourcing

Countries such as U.S, U.K, Norway and Australia amongst others can benefit by outsourcing. The economy of these countries has increased tremendously after outsourcing. In the U.S, after the outsourcing boom, the economy has increased, jobs have increased and the wages of American workers have increased.

Example of Outsourcing job
Call center outsourcing remains a popular and viable way to deliver high quality service while lowering operating costs in the call center. By outsourcing call center functions, companies can improve productivity, extend their service hours and place focus on their core competencies.

Services
For over a decade OUTSOURCE has provided Human Capital Resource Management Services to national corporations, local, state and federal government agencies. We deliver high quality Staff Augmentation, IT Consulting, Payroll Services, and Medical, Technical and Management Training Solutions to a diverse client base. OUTSOURCE professionals provide the missing piece to our client's resource puzzle.


Ingrained in every service we deliver, our first goal is to provide our clients with superior customer service, which starts with our quality processes. Whether we are providing human capital, managing a large consulting project, or delivering training solutions, our processes are tailored from start to finish. We ensure our clients receive the attention, quality, and ROI they deserve.

=Outsourcing Information Technology to Asia=
A combination of high overhead in the United States and strong cultural ties between the domestic and Asian information technology industries have led many companies to outsource labor-intensive software programming to Asia and Eastern Europe.

India has always been a major player in information technology (IT); they even make their own supercomputers for predicting monsoons. It wasn't until the Y2K bug emerged that the need for legions of cheap programmers really arose, however, and American companies began to see the potential for outsourcing overseas. After Y2K the IT service industry exploded, with American companies outsourcing everything from data entry to customer service to India and other Asian countries.

India was a natural choice for outsourcing. Many American technology companies were either created by or employ non-resident Indians (NRIs) or Indian-Americans who still have strong ties to family and friends in India. This cultural bridge combined with the vast pool of cheap, technically skilled, English-speaking engineering talent produced by India's engineering colleges creates the perfect environment for information technology.

Despite its distinct advantages for companies looking to outsource their IT services, India's volatile political climate and rampant corruption present problems. Some of the 185 Fortune 500 companies that outsource software to Asia are choosing places like Vietnam or China with more predictable politics and less corruption. Other companies that outsource their customer service are finding that their customers prefer the Americanized English of the Philippines to the British English that predominates in India, though all of these countries have their drawbacks, from censored Internet lines in China and Vietnam to Muslim militancy in the Philippines.

Despite the hiccups the IT service industry continues to grow as the software industry becomes more competitive and U.S. companies try to reduce overhead. The Asian IT service market is still in its infancy, but by 2008 industry think tank Nasscom-McKinsey predicts a $17 billion IT service industry in India alone.


Reference:
http://www.cyfuture.com/definition-of-outsourcing.htm
http://www.outsource2india.com/why_outsource/articles/benefit_outsourcing.asp