Outsourcing is a powerful way for companies to reduce costs, improve quality of service, time-to-market, extend the scope of customer services and be better capable to focus on the core competencies of the organisation - are paramount to keeping a competative edge in global as well as internal markets.
For European and especially German companies, outsourcing and near/ off-shoring can also create a new source of flexibility that helps them meet fluctuations in demand, thus bypassing the hindering thicket of labor laws back home.
Europe's rapidly aging populations and low birth rate means that offshore labor will be increasingly needed in coming years to make up for a fast dwindling workforce.
Outsourcing used to be a decision made by financially troubled businesses that wanted to cut costs or offload unprofitable, cost-ineffective or money-sapping assets.
Over the last several years, initially led by American and then followed by British companies, a new global-sourcing trend has set in. Nowadays, virtually every industry views outsourcing as a smart business practice, and one that's simply unavoidable.
Outsourcing & Offshoring have now become mainstream. Outsourcing is a business practice that is now on the boardroom agenda of most European blue chip companies and public sector organisations..
"Outsourcing Benefiting American And European Economies Claims London School Of Economics [L.S.E.]"
Outsourcing to Eastern Europe?
Is Bulgaria a Good Nearshore Destination?
Watch this video.
Outsourcing helps drive economic growth at a time many EU economies stumble.
Companies are offshoring and outsourcing their software development, IT and various business processes, HR, back-office, marketing, call centers, sales , accounting, design, development, testing, DB architechture and a variety of complex needs.
While looking into multi-shoring outsourcing (global-sourcing) approach in order to enable your company to save money, it is important to realize that a long-term strategy and vision are neccessary, as it may not be that you see great savings immediately.
However, there are a host of other important benefits:
Ongoing management of relationships - excellent clear Communication is vital to invest and maintain:
See What Could Go Wrong When You Use Outsourced Call Center Agents in India...
Funny Outsourcing Video about the BPO Industry . Business Process Outsourcing is the most common form of outsourcing large companies employ to cut costs.
John Gray, assistant professor of operations at Ohio State University's Fisher College of Business, gives a business perspective on offshoring and outsourcing; its effect on the economy; benefits and risks and the trends that indicate offshoring is slowing down due to increased costs in today's economic climate.
In order to grasp better understanding of the outsourcing and offshoring industry, it is vital to first know the different terms and definitions. Jack W. Plunkett, CEO of Plunkett Research, Ltd.™ also explains and discusses the advantages and disadvantages pertaining to the outsourcing and offshoring industry. It seems that language and communication barriers and time zone differences could potentially lead companies to choose nearshoring or reshoring instead. However, it should be noted that one of the main reasons contributing to the rapid growth of offshoring is because of the lower labor, production and distribution costs involved.
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