December 7, 2016 5:31 pm | Updated 1 year ago.
As Larry Elder said, “Outsourcing and globalization of manufacturing allow companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation.”
As organizations grow and become digital, companies are in the process of outsourcing support functions and core processes such as maintenance, logistics, and quality control. Some even think of offshore outsourcing the entire manufacturing process. Businesses generally outsource to offer a great variety of products, manage complexities in the business more productively, and reduce cost and access to better technology.
D2e explores into some the most common tasks which are generally outsourced to an offshore location by American companies.
- Customer Support –
The most common and oldest work that is being outsourced is that of customer service, where customer’s needs are looked into by providing high-quality services and assistance. The cost of running such a center in America is quite high whereas a same type of organization in Philippines, Vietnam or even India can be run at a much lower cost.
- Accounting –
Some of the most common work in the field of accounting that is outsourced to an offshore location is that of payroll accounting, accounts payable and accounts receivable. This is one task in organizations which involves a set of standardized rules and regulations that are common for professionals around the globe. Organizations in South Asian countries especially are increasingly adopting the American style of maintaining financial statements which are helping them to become outsourcing centers. Australia is one such country which outsources a majority of its accounting work to countries like India and Sri Lanka.
- Preparation of Tax –
Tax preparation is another work which is generally outsourced to an offshore location. The main reason behind outsourcing this kind of work is mainly to streamline one’s business and to have free time to focus on more important work. The entire process is very simple. The firm based in the USA simply scans the documents and save it in their network. The offshore outsourcing service provider situated in Malaysia, Philippines or India downloads the information does the necessary work and then simply uploads the finished documents to the USA data center. Apart from saving cost, the time difference between the USA and South East Asian countries is another reason for outsourcing to an offshoring location. For eg, a tax return sent to say India in the afternoon will be ready to be downloaded by the firm in the USA in the morning.
- Computer Programming –
Generally the core process of developing software is not outsourced. The work is done by the top level employees in an organization. However, there are some works related to database, calculator or message board which can be quickly completed by a team at an offshore location at less than half the price.
- Data Entry –
Mundane and routine data entry task like scanning, cataloguing, indexing and order processing are often outsourced by American companies to offshore locations. All business houses to curtail cost generally outsource the data entry work. The only time they rethink the decision is when the data concerned is confidential or sensitive in nature.
- Research and Development –
Changing times have led organizations to outsource mostly all types of research, right from pharmaceutical research to customer tastes and preferences are often outsourced to an offshore location. The company has to indulge in a lot of caution in selecting the right kind of partner who specializes in that particular kind of research.
Apart from the work mentioned above, companies also outsource work related to engineering, manufacturing, legal services, health care services and creative services are often outsourced to reap the benefits like controlling the cost of operations, lowering investing on infrastructures, to overcome talent shortages, and finally to get access to top class capabilities and improve operations.
D2e Consulting can act as a bridge to help select the perfect offshore outsourcing partner.