Whenever any service or process is transmitted to a third party with the sole aim of increasing the organizational effectiveness, it is termed as outsourcing. Probably the most integrated and value added input to today’s businesses now better aligned and termed as managed services.

Outsourcing not only saves you time but also brings tremendous strategic, operational and tactical business outputs for an enterprise. No wonder the trend is fast picking up and a large number of corporate entities are moving into this direction.

We have numerous examples in front of us where results have been guaranteed and par excellence on account of outsourcing. The services rendered to the end customer are well in tune with the requirements and surely save resource such as time, effort and bring in financial gains on bottom as well as top line.

For example, a company may tie up with different segments of a bank and deliver the services on it's behalf. We have Bank of America who hired Exult for outsourcing of HR functions. The results were visible promptly.

There could be ample reasons why organisations take up outsourcing, but let us figure out the 5 best ever reasons for outsourcing.

CORE COMPETENCY: While for some enterprises the primary reason for outsourcing may be cost factor, but in reality one can not bring down the costs to a lower level by just outsourcing. One reason is of course to concentrate on core competency and aligning mainstream. For example, an insurance firm may have its own advisors, team managers and business associates to look after the core business, but the company can take services from a call center which would handle the clients calls and revert back to the company. Thus, giving the company the competitive edge.

MANAGEMENT CONTROL: Another very important reason is management control. Sure you outsource to a third party outfit but you save tremendous hassles like paperwork and technicalities and establish a single window for your transactions thus making it much more efficient, precise and proactive. A well laid out MOU (Memorandum of Understanding) or lets say neatly put terms and conditions sure cut out on unnecessary frills.

The advantages are enormous. In case, the management changes mind and wants to take over the fixed assets of the third party or the contracted party at a later stage, these assets can be readily converted into cash.

CREDIBILITY ON SPECIALISED SKILLS :Imagine a corporate communications campaign being outsourced to an advertising agency. Why do we think this is done with perfect rub off and precision. Say for instance the much talked about Vodafone Campaign.

We sure have the answer. It is indded the credibility on the specialized skills. It is at times difficult to match up to a particular core competency that would be authentic and would flow automatically from a third vendor.

FASTER PROCESSES AND PROJECT COMPLETION :Apart from credibility due to specialised skills hired from the vendor, outsourcing also delivers faster results. The processes and projects undertaken can be completed successfully in lesser time. Not just that the management does not have to worry on manpower, deadlines, efficiency and the last but the least, the chain up on processes.

CUSTOMER CENTRIC APPROACH: How many of us have heard about bottom to top communication ? In simpler words, our clients tell us decide and frame their requirements. IN such cases, it is easier to communicate the requirement , take down a brief and work in sync. As simple as it can get.

Apart from the basic 5 reasons there are many more small tips and plug ins to major number of lacunaes in the enterprises that have well been answered never better than just using a simple letter word : Outsourcing.

Jaya Sinha/ITvoir Network