The Benefits Verses The Risks of Outsourcing IT Systems & Services

Are you thinking about outsourcing an IT service or system? If yes, do evaluate the various benefits and risks that go hand in hand with IT outsourcing.

Today most large, mid-size and small organizations decide to outsource IT services or systems to stay competitive. However, the option of outsourcing comes with some proven benefits and not so obvious risks as well. If your enterprise is keen on outsourcing IT, it would be probably be a good idea to carefully analyse the risks and benefits, plan out possible measures to attenuate the risks and prepare your in-house resources for the change that outsourcing brings.

Here are some benefits and risks that your enterprise needs to be aware before you outsource IT services:

The Benefits

1.Minimize current cost

Reduced cost is the most compelling reason why most companies choose to outsource IT. With outsourcing, the capital outlay can be successfully controlled. If you opt for in-house IT services, your enterprise will be incurring fixed cost. However, by outsourcing, either onshore or offshore, the same fixed costs are converted into variable ones. This will free up your capital for use in other areas of your business. Not only will this make your business more appealing to investors, it will also give you the freedom to invest your capital into areas that will bring in direct revenues.

2. Control expenses

If your business chooses to perform every operation internally, then the expenses associated with each activity has to be passed on to the customers. On the other hand, outsourcing IT services to a service provider that specializes in business networks and support will alleviate some of your expense, while giving your enterprise a competitive edge when it comes to the pricing of your services and goods.

3. Increased focus on core operations

Through outsourcing IT services, your managers can completely focus on the core objectives and goals of your business. If IT services are performed in-house, some of your managers may have to split their time between activities that engage prospective customers and concerns around operations, leaving less time for core business objectives. Outsourcing erases this necessity and enables managers to shift all their time and energy into core business competencies.

4. Compete with large businesses

Large businesses have the required resources to maintain cutting-edge services and systems by themselves. The same cannot be said of small to mid-size businesses. Small and medium sized business very often do not have the required resources or budget to implement IT systems and services on their own. Outsourcing IT services bridges this gap and creates a more equitable playing field between large and small enterprises. Continue reading

4 Advantages of Outsourcing HR Services for your Small Business

As a small business owner, you might think that outsourcing HR services has benefits only for large companies.  You may be under the perception that outsourcing can only help large enterprises by streamlining their business functions and helping them reduce cost. This however is not entirely true.  In today’s economy, even small businesses can benefit from outsourcing human resource services to a skilled outsourcing service provider.

Here are the top four advantages that your small business can leverage by outsourcing HR functions:

1. Shift your focus towards business productivity: Do you spend a countless number of hours on managing routine administrative tasks? With HR out of your hands, you can shift your focus towards the revenue generating activities of your business. This way, you can enjoy a better ROI (Return on Investment).

2. Enjoy an enterprise class solution: By outsourcing your HR functions, you can enjoy several enterprise class benefits. This can help you minimize your costs and successfully compete with other small and large business rivals. Continue reading

Top 5 Benefits of Investing in HR Outsourcing

Like any other market of today, the HR outsourcing market too has its own set of worries. While the supply side has too many service providers, with some even running loss-making HR contacts, the demand side has a large number of companies urgently looking for more efficient and cost-effective HR services. However, outsourcing experts have predicted that 2014 will be the year during which the demand for transactional HR processes will increase and more HR contracts will be signed.

Does your company wish to outsource HR services to India? If yes, then read up on the top five benefits that HR outsourcing can bring to your company:

1. Minimize HR costs

Outsourcing HR can help you successfully reduce and manage the cost of HR. Your organization can achieve over 20% of savings by employing self-utilising tools, standardizing HR processes and outsourcing. When your HR cost base is tightly controlled and efficiently managed, you can make better decisions about the relative allocation of resources. Outsourcing HR can prove to be extremely beneficial, if your company is making acquisitions, mergers or undergoing rapid changes in employee numbers.
2.  Avoid making major investments in HR technology

By outsourcing HR to India, your company can steer clear of making expensive investments that are required in today’s HR technology. Instead of investing on that multi-million dollar HR software upgrade, you can invest your money into your firm’s core business activities. Some HRO service providers even offer their own HR platform, along with latest upgrades and services, thereby making it easy and cost-efficient for companies who outsource.
3.  Come up with a winning HR strategy

Outsourcing HR processes can help you realign your HR and focus more on a HR strategy that supports your core business. Outsourcing can help you increase the proportion of the HR cost allocated to strategic HR and thereby reduce the proportion allocation to HR administration. With all your non-strategic HR processes outsourced, you will be able to respond quickly and effectively to the changes that take place within your organization.

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