When do you outsource your product or service development?
Outsourcing is a powerful business strategy. For most companies looking at business development and fast growth, outsourcing has been the tool, and India their favorite destination. In fact, the outsourcing industry in India is so big, that the country is expected to net revenue of US$225 billion by the year 2020, in spite of the dips and uncertainties of the world’s economy.
The pros of outsourcing your work are numerous and has helped clients and outsourcing vendors alike. But the decision to outsource your work depends on a number of factors and this is not an easy task. Business owners are often faced with a dilemma as to when is the ideal time to outsource?
- Obviously, the most important aspect is the cost factor. If you are looking to cut down your input costs or fixed costs or, if you don’t have the necessary funds to set up your own development centre, but the demand for your product is high, outsourcing is the way to go. With outsourcing you get the job done with relatively less amount of input plus you don’t have to deal with hassles of finding resources and training and managing your employees.
- Outsourcing is a wise option if a task is temporary and a one-time service. This way you enjoy an added profit without actually investing in creating the service. Also, if you have tasks which are eating up your time and resources, or tasks which are not revenue generating, but still a necessity, outsource the project to companies which specialize in carrying out these tasks.
- The decision to outsource a project can be made depending upon the skill sets of your talent pool. If you don’t have the necessary expertise to provide solutions for a high end problem, outsource your work instead of recruiting and training.
- Cost reduction may not be your ultimate motive for outsourcing. It can also be used when you don’t have the necessary man power to cater to all your existing tasks, even if the in-house cost of execution is less.
The bottom line is, outsourcing brings a steep curve to your investment versus revenue chart. In addition to a significant decrease in your production cost, outsourcing connects you to service oriented companies with plentiful resources (and the flexibility) at your disposal.
If you did recognize any of the problems mentioned above as one of your own, and want advice regarding outsourcing, do get in touch with Suyati Technologies. Suyati with its experience in executing various projects and dealing with clients from various geographies can help you chart your outsourcing plan.