Outsourcing is the transfer of the management and/or day-to-day execution of an entire business function to an external service provider.

The economist, Adam Smith, says in his treatise The Wealth of Nations, “If a foreign country can supply us with a commodity cheaper than we ourselves can make it, it is better to buy it of them.” Outsourcing as we know it today is merely a progression of an idea that has existed since early days of trade.

  • Cost savings. The lowering of the overall cost of the service to the business. Access to lower cost economies through off-shoring the wage gap between industrialized and developing nations
  • Cost restructuring. Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from variable to fixed cost and also by making variable costs more predictable.
  • Improve quality. Achieve a step change in quality through contracting out the service with a new service level agreement.
  • Knowledge. Access to intellectual property and wider experience and knowledge.
  • Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services
  • Operational expertise. Access to operational best practice that would be too difficult or time consuming to develop in-house.
  • Staffing issues. Access to a larger talent pool and a sustainable source of skills.
  • Capacity management. An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
  • Catalyst for change. An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a change agent in the process.
  • Reduce time to market. The acceleration of the development or production of a product through the additional capability brought by the supplier.

We provide few outsourcing options which includes:

  • outsource whole IT department
  • outsource IT Security Team
  • outsource new application development
  • outsource maintenance of ongoing application

New trends of outsourcing is called holistic outsourcing,  good reading can be found here.