Benefits of Outsourcing
Cost management

l          Realization of cost savings through economies of scale and consolidations

l          Personnel cost savings through low offshore salary rates

l          Technical cost savings

l          Acquisition of cash through liquidation of computers and the decrease in depreciation expense

l          Convert costs centre within company to profit centre within vendor's operation

Focus on core activities

l          Refocus organization

l          Reengineer processes

l          Accommodate business need to downsize.

l          Outsourcing non-core business functions frees internal resources to focus on business-critical tasks

Improved operational quality

l          Address system integration issues

l          Access to improved backup and disaster recovery facilities

l          Increased expertise - benefit from the core business expertise of specialized partners (customers can choose an offshore facility that is specialized in a particular vertical market segment)

l          Incremental increases in data processing resources rather than a step function

l          We have adopted third-party quality standards (CMM, ISO) which, in many instances, are more rigorous than those of our clients

De-risk business

l          Increased access to diverse technologies

l          Access to technology without capital investment.

l          Access to major and immediate changes

l          Distributed and thus lowered risk of running an IT operation

l          Reduce technical obsolescence risk

l          Stabilize Information System costs

l          Provide alternatives

l          Facilitation in cases of leveraged buyouts.

l          Readily proliferated with acquisitions.