Is Outsourcing really helpful to business?

Outsourcing is the process of transferring some of the functions to a third party. This means that a company is contracted to another company to do some of the functions that are least important. The main reason is for them to concentrate in their core functions and not in the non-core functions of their business. In that way they could increase their sales and manufacturing. Another reason is to lower the cost but increase the production. Lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, technology and resources.

But somehow, not all company who outsource is satisfied. Some other said that it is not helpful to outsource. Why is it? - It is because the company that provides the services is not meant for the particular function. In order to be successful in outsourcing you have to consider some factors.

How to Manage Outsourcing?

In order to manage Outsourcing;

Ø One need to know the capability of the chosen provider

- It is important that you have to know very well the backgrounds of the service provider. Find out if they deliver the services well and on time.

Ø Evaluate the outsourcing company if they really provide quality of work

- In a couple of months try to evaluate or check if you have receive the products and services on time and with quality.

Ø If they doesn’t met your requirement then you have to chose another

- If you have noticed that nothing’s going right with the services and products that they have offered you are free to find another company to fulfill their lacks.

Ø The contract should benefit both the provider and consumer

- In this kind of business both parties should benefit each other.

I hope it does help you.

Does offshore outsourcing make sense for advertising?

The benefits of offshoring aren't just limited to the IT world. See if sending your ad production overseas might work for your cost-containment initiatives.

Capitalizing on lower cost resources overseas is certainly not a new phenomenon; but what may surprise you is that offshore outsourcing is rapidly moving from experimental to mainstream in the marketing world.

Forward-thinking businesses and agencies can lower ad production costs by 40 percent or more by moving components of the process offshore. Though this capability has existed for a number of years, a few recent trends are making it a mainstream reality

You’ll probably be surprised to learn the companies leading the charge. For example, Ogilvy & Mather recently opened a 24-hour creative support studio in Bangalore for its global accounts such as Lenovo. Wieden + Kennedy opened an office in Delhi to serve local and global accounts, merging with A Creative Agency to form W + K India. And they're not all new ventures. Sapient, opened an office in Delhi in 2000 and currently has over 3,000 people across three offices in India alone. Sapient integrates U.S.- and Europe-based studios near the client geography with creative and technology teams in India to produce banner ads, microsites and web/mobile applications.

India has a natural advantage in an English-speaking workforce and scale. However, while agencies vary in their scale and maturity with respect to offshore ad production, the phenomenon isn't isolated to India. Indeed, the talent is abundant globally, and advertising executives can choose from agencies with services based across India, China, Latin America, Eastern Europe and Southeast Asia.

Now, before you slash budgets and reduce your staff, understand what it takes to be successful in offshoring ad production.

India must maintain edge in outsourcing

India will loose its outsourcing share to China and others if it does not continue with low costs

"If outsourcing is favouring India today, it does not mean it will always be in favour of India," he said, adding "the time any country provides labour even for a rupee cheaper than us, outsourcing will move to them".

presently "China is the biggest threat".

China is ahead in the technology sector.

"India has a reservoir of highly technically qualified professionals,"