Outsourcing and offshoring concepts have a direct impact on the way most companies are operating. Globalization has seen a revolution in technologies that are supporting ways in which most multinational companies have been operating. As the author in the article "India & the Extended IT Enterprise" highlights, there are two main reasons why companies are outsourcing and offshoring which I firmly believe to be the main drivers. These two reasons as highlighted in the article are; it enables the CIOs and CPOs to reduce costs which helps the firms to remain strategically competitive. This is done by the removal of repetitive operations in a firm which helps the firms in focusing on other core operations. The second reason relates to expertise. Firms from India are known to provide the best services in the supply chain. Due to their expertise, they can offer the firms outsourcing with the best quality.
Apart from these two main drivers, there have been shifts in the industries revolution. Other reasons that may be making firms to outsource are; In the mitigation of risks, firms have changed their strategies and are outsourcing. The firms responsible for offering outsourcing services are accountable for the services they provide to the firms and especially in software developments. Another reason why the firms are turning into outsourcing is that it is a way of reaching new markets. The outsourcing firms act as agents in marketing firms that they offer services to. This is a strategy that most multi-national companies have been using in entering new markets around the world.
Delegate your assignment to our experts and they will do the rest.
Outsourcing and offshoring, therefore, have a significant impact on the firms by making their processes more manageable. However, it is the responsibility of the CIOs and CPOs to find the right outsourcing. Although outsourcing is beneficial to the companies, having wrong partners may increase the company risks rather than having a helping hand to the company's success. Having the right partners is the only key to successful leverage of benefits.
