International companies outsource their works to companies in countries like India and Philippines to save money. Have you ever thought how much is saved by outsourcing? It is normally thought that more than 60% cost is saved. Now, a study by TPI (a famous sourcing advisory firm), has stated that by outsourcing a company actually can save 15% on an average. Those who oppose outsourcing in the western world may feel that they have something substantial against outsourcing at last. To their disappointment, Duncan Aitchison, managing director of TPI, viewed that 15 per cent was a significant saving.
“Although, clients continue to view outsourcing as a means of achieving cost savings, they are also increasingly concerned with improving the quality of their services. We are seeing an ever-growing number of clients using outsourcing as a way of introducing innovation into their business and the number of TPI-led deals with a ‘transformational element’ has never been higher.”
After reading about this matter in some websites, I think that outsourcing will not decrease for the time being but quality will become a very important issue in the coming days. Only those companies will get outsourcing work orders that can ensure high quality.
I wonder what the bosses of leading Indian outsourcing firms are thinking about this matter.
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