Forward-looking companies of all sizes are now looking at the cloud computing model to reduce infrastructure costs and increase computational capabilities. In spite of recession, work must continue and hence it’s not surprising that there has been no let-down in outsourcing.
In the light of the current economic downturn, more and more companies are planning to outsource either because they’ve cut full-time staff or because they’re simply unable to hire full-time staff.
Making the best use of Outsourcing
Achieving operational efficiency to mitigate bottom line pressures, and adopting stringent cost cutting measures are the need of the hour for companies reeling under the effect of the economic recession. Off shoring is a practical solution to stay afloat during recession, by making use of the services of external providers. Some of the strategies which companies can follow to maximize returns from outsourcing are highlighted below:
During an economic down turn, buyers may need to reduce the number of offshore suppliers they use and partner only with those companies that have high levels of project management skills and the ability to deliver solutions at competitive rates. This strategy is important to remain viable and retain customers in the long run.
Opt for flexible payment structures and shorter contracts.
The benefits of outsourcing far outweigh the initial challenges that companies may encounter while opting for this business practice. Outsourcing non-core functions allows professionals to attend to key business needs. Companies have also discovered that adopting outsourcing as a strategy to reduce costs is the ideal solution in the bid to sustain their shrinking profit margins and IT budgets. Quality improvement is also cited as one of the biggest benefits of global sourcing.
The maturing of the off-shoring industry over the years has lead to a scenario where outsourcing is no longer regarded as a mere tool for cost-cutting but is being accepted as a strategic tool for business growth and overall business development. This is further aided by the fact that generally outsources are equipped with higher skill sets and are subject matter experts in their specific fields.
Recession will not derail outsourcing. The outsourcing experience has been overwhelmingly positive for most companies who now make smarter decisions in choosing offshore service providers capable of delivering the best results at cost effective prices. Outsourcing is on the upswing and a recession economy is only one reason for this trend.
Companies looking at outsourcing software development projects are continuing to favor India as an outsourcing destination. IT professionals here are at par with the best in the world, yet they come at a percentage of the cost. Leo Technosoft established in 2001 was set up to meet the increasing global demand for high-quality, affordable custom software development and e-commerce services. Based in Florida, Leo Technosoft has highlighted the possibility of efficiently and cost effectively working with geographically dispersed teams, providing high quality, software outsourcing services.