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Merits and Demerits of Outsourcing to India as an Offshore Outsourcing destination
Outsourcing has been successful in India as the merits of outsourcing overshadow the demerits of
Outsourcing businesses to an offshore location. This may not be applicable to all parts of the Globe and to
other offshore destinations across the whole world. The benefits of outsourcing far outweigh the
disadvantages of outsourcing. Monetary benefit and cost cutting are not the only advantages of
outsourcing. There are a lot of other merits as well as demerits. Let us look into them in good detail.
Cost Benefits
Cost related benefits are, however, the first and foremost benefit of Offshore Outsourcing. Companies had
been outsourcing time consuming support services for a considerable period of time before starting to
outsource high-end processes to India. The cost effectiveness in outsourcing back-end support services
has been applied on high-end services. This saves enormous costs for the company that outsources
projects to offshore destinations.
Increased concentration on mainstream business
Outsourcing leads to saving a lot of managerial efforts, time and cost to concentrate on research and
development and core products and services of companies. Concentrating more on the main business
streams will lead to increased returns.
Alternative Hiring Options
While Outsourcing to Offshore destinations, you have a lot of options in hiring. You can hire according to
what the project demands. Not all projects are similar and so, you may want to hire resources on a
weekly, monthly, and annual basis depending upon the cost and duration of the project. You choose
offshore destinations to reduce costs and these hiring options will prove to be efficient for you.
Some of the demerits of Outsourcing include:
Transfer of Management and lack of supervision – You will have to trust the offshore company and
entitle almost 80% of ownership to that company. You do know little about the management and policies
of the offshore company than to take ‘on-paper’ documents as corroborating of their track record. You
will reap the benefits only after delivery of the work.
Creates necessity to disclose Intellectual Property
If you outsource, you will have to let the other company know of inside information, plans and future
actions to some extent. Non-Disclosure Agreements are very important in protecting company related
information.
Securenext software is an offshore outsourcing company running offshore software development centers
in India, Chennai and in Clovis, California, USA. You can hire developers offshore Indian Programmers
for PHP, NET, Rails, open on an hourly, part-time or full-time basis at competitive pricing with Money-
back guaranteed.
You can contact through e-mail: [email protected] or toll free: 800-511-5540
