Why Outsourcing Is Now An Avenue For Survival?
Outsourcing of tasks is a global trend devised primarily to reduce overheads and recurring costs. In this age of ruthless market competition, it is imperative to keep costs down as margins are very thin. Global outsourcing is the current business development in different productive sectors of world economy. Normally functions integral to operating a business but not the core business, are outsourced. Game Art Studio is one such game development outsourcing company based in India but having a worldwide presence.
Need for outsourcing arises while answering the following questions:
- Can overheads be reduced?
- Is it possible to cut down on payroll expenses?
- Is it possible to have access to the best resources?
- Can the marketing and cash cycles be speeded up?
Emergence Of Global Outsourcing
Global marketing aided by advanced information technology and communication methods are outstanding phenomena contributing to the emergence of outsourcing. Now, it is essential for companies to use resources judiciously so that core areas are highlighted. Spending time, money, and energy for routine jobs is actually a waste of resources for a manufacturing unit or research institute. Business processes like credit follow-up and collections, product maintenance, publicity and advertising are integral to running an equipment manufacturing unit but not its core area. Such BPO (business process outsourcing) operations could be easily outsourced to organizations specializing in such activities.
Similarly, in this generation of extensive automation and computerization, activities like data storage, data management, file storage and recovery, web designing, online marketing, and game development are outsourced. All these functions fall under the category of ITO (information technology outsourcing).
Judicious Use Of Available Resources
In any organization dedicated departments are needed to carry out all such activities. This involves utilization of resources in form of manpower and equipments that entail considerable cost. In addition to salary, social benefits, retirement benefits, and productivity bonuses must be paid to keep these resources intact. When these jobs are outsourced, a company not only reduces its overhead expenses but also is able to divert resources for developing core business areas.
Indian outsourcing companies are equipped both technologically and humanly to address all outsourced jobs. They also have the best resources to cater to even the smallest demand of customers. For a company it may not be possible to locate the best resource for a specific task. This lacuna is easily removed when hiring the services of an Indian offshore outsourcing company. Through the use of Internet it is possible to locate and hire the services of an appropriate resource for a definite job. As utilizing these services are paid on assignment basis, no overheads are borne by a company.
Outsourcing For Faster Turnaround
Global outsourcing hastens marketing cycles and reduces delivery-payment or cash cycles. These jobs are outsourced to companies hiring professionals for specialized activities. Usually in marketing there is a considerable gap between the launching of a product, its publicity, availability and ultimately the sale. After introduction of online marketing, mostly undertaken by Indian outsourcing companies, this gap is significantly reduced. Recovery of credits is another vital development of global outsourcing.
With newer technologies being introduced, many India offshore outsourcing companies such as Game Art Studio have come up with interesting online games. Games development outsourcing has broadened the limits of operation of specialized ITO services.