Why Outsource web development . Merits / Demerits ?
With the increasing globalization and rapidly growing IT sector, outsourcing has evolved to become popular in developing countries like India. The basic definition of Outsourcing is “delegation of work to someone else” either to external firms or to an individual. You get the deliverables of the work within a defined deadline, and you make the payment for the work; it’s as easy as that. If you like their work you continue to work with them for future assignments otherwise you may terminate the professional collaboration, this is how it works. There are numerous advantages of outsourcing and that is why organizations in countries like US and Europe outsource their work to various offshore companies in India. In India, New Delhi gets most of their work from North America. Following is the list of main benefits that a business gets when they outsource their work –
Cost Effectiveness – Cost Effectiveness is certainly the number one benefit of outsourcing the work to Asian countries like India where cost of living is much lower than most of the Western countries. Moreover India has an enormous amount of qualified, technical & English speaking workforce and the salary rates are very favourable as compared to the developed nations. Firms in India are willing to provide the desired services for a fraction of the cost which is the best part for the outsourcer. And that is the main reason why India is an obvious choice, for Information Technology sectors, and sectors where Human Resources is the key factor. MindChai is a Web Development Company in New York which has its offshore office in Delhi & they get most of their business from the developed nations like U.S. and Europe.
Segregation of Work Load – The second most important benefit is the segregation of work load. At some point of time it becomes difficult for an organization to handle all aspects of the business & in this situation by outsourcing some of their services, they can use their existing experienced employees on more critical issues and the core business activities of the company. When they assign tasks to an external firm, then those external firms are definitely in much better position to accomplish those jobs carefully. Instead, if the job has to be handled in-house along with a lot of other tasks, there is a definite chance that the problem-solving will become much more difficult. Outsourcing reduces the overall workload of a business which makes it an obvious choice.
Risk Management – Risk management has become an important concept in today’s times with businesses becoming more and more experimental with their products and services. This is where outsourcing certain parts of the business can help. Outsourcing is generally done with a contract which makes the person taking up the job responsible and answerable for that part of the business so the company gets relieved a bit from at least those parts of the business which are outsourced. Interestingly if the company were to get this job done through their domestic staff, there would have been no specific contract for it and the company itself would have been answerable if any problem occurs. Outsourcing is a way of risk sharing.
Outsourcing has many advantages but also have few disadvantages on the other hand like poor communication between two parties which leads to poor results. And one of the major risks involved is the failure of delivering the products/service in time which may lead to huge losses for a company. But overall outsourcing has been successful till time and its benefits outweigh its demerits.
Mind Chai is a web development company in New York, offers offshore services to its clients across the world.
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