Blog - Outsourcing – Boon or Bane
Not just for the last 4 or 5 years, it’s been more than two decades, we can see IT projects are being outsourced to different places and people. Various genuine reasons are there to be believed in this outsourcing. Over the last few years, India stands ahead of most countries where multiple fields of projects from BPO to IT sectors are being outsourced.
Reasons behind outsourcing
Primary reasons for outsourcing are cost, timely delivery, skill set, professionalism, brand value and reputation. Cost-cutting or cost reduction is the top priority for any business to outsources their projects. Outsourcing can be split into two major types – Offshore Outsourcing & Onshore outsourcing.
Offshore Outsourcing
Offshore outsourcing can be said as the process of hiring experts from another location than own country to get the projects done. Businesses under categories like customer services, voice process, cloud servicing, online services, etc are mostly into offshore outsourcing. There are four basic types of offshore outsourcing methods followed by most companies.
- Business Process Outsourcing [ BPO ]
- Knowledge Process Outsourcing [ KPO ]
- Information Technology Outsourcing [ ITO]
- Research & Development [ R&D ]
Onshore Outsourcing
It is commonly referred as hiring professionals from own land to get the projects delivered i.e. domestic outsourcing. Onshore outsourcing is vitally done for cost-cutting in terms of infrastructure, support staff and its associated CTC for the company. Companies in like medical, financial, forex, etc prefer onshore outsourcing to keep their data secured and under their surveillance.
Roles & Responsibilities in Outsourcing
It’s the complete responsibility of the company / business concern to have a perfect structure for monitoring the status & process of their outsourced projects. Businesses are employing people with designations like sales manager, process executive, project lead, QA analyst, director of services, etc to handle these outsourced projects. The roles and responsibilities of every person may vary accordingly to their designations to handle outsource projects. These designations and their responsibilities also vary from one company to another in accordingly to the business nature.
Sales Manager: They are responsible in selecting the right company to outsource i.e. offshore & onshore their projects
Process Executives: People under this designation involve in taking care of the complete life cycle of the projects from initiative to completion.
Project Lead: This person is highly responsible in managing and continuous progress of the outsourced projects.
QA Analyst: He or she plays the main role in maintaining and implementing the “client requirement specifications” in the projects without any backlogs.
Director of Services: Ultimately, the director or the head is the one who handles multiple tasks from financing, contracts or agreements, NDA’s, operations and successful delivery of projects within the stipulated deadlines.
Also, the company that receives outsourced projects has various protocols, structures, roles & responsibilities as like the donor companies. On the whole, the Boon or Bane completely depends on both companies’ unless they have disputes regarding the outsourcing & the projects.
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