Off-shore outsourcing company in india

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Outsourcing Company functions for

reasons that are organizationally driven, improvement

driven, financially driven, revenue driven, or cost driven

(Outsourcing Index, 2003). Moreover, offshore

outsourcing company can be viewed as a component of

corporate and industry international expansion and

restructuring. A recent McKinsey Global Institute

Report (Farrell, 2003) identifies five horizons of

the global industry value chain:
• Market entry: Entering a country for

purposes of market expansion.
• Product specialization: Specialization

takes place in different locations. Each location may

engage in final goods trade with each other.
• Value chain disaggregation: Product

components are manufactured in a certain location and

assembled elsewhere.
• Value chain reengineering:

Reengineering processes to capture additional

advantages from production cost differentials.
• New market creation: New market

segments are penetrated as a matter of capturing the full

value of the company’s global activities. According to

another McKinsey study:

effective implies

identifying and managing the ‘natural owner’ of every

activity in he value chain. Off-shore outsourcing

company arises from the basic reality of the

global environment: any company, in any country, may

be the natural owner! It can then lead to a

drastic restructuring, including ‘unbundling,’ of the

companies affected. Indeed, as total interaction

costs among companies and industries are changing,

companies around the world are reorganizing themselves by

providing the answer to their question:

what business are we in?
A firm can use an outsourcing development company

to supplement its core competencies, by contracting

with outside providers for activities in which the firm has

no unique capabilities. This “strategic outsourcing”

can generate several benefits:
• Extracting the maximum benefits from internal

activities, since they represent what the firm does best
• Maximizing their competitiveness and protecting or

even expanding their market share
• Effectively utilizing suppliers capabilities
• Decreasing risks, shortening cycle times and

fulfilling customer needs

A survey of 500 human resources executives found

that:
• 92% of the firms that had moved jobs overseas did

so to cut costs.
• An average of 13% of jobs at each company are

already located off-shore and an additional 12% could be

relocated within the next three years.
• 45% of the 500 firms have overseas operations.
• 71% of the remaining companies planned to move some

jobs abroad by 2005.
• Of the firms who are currently using off-shore

labor, 29% began doing so in the years 1995-1999, while 43%

began in 2000-2003.