Contents

• Introduction
• Outsourcing – India Advantage
• India dis-advantages
• Outsourcing or building up a captive shared services operation at Melbourne – Advantages
• Dis-advantages
• We must choose
• Conclusion
• List of References

Description

Outsourcing is two types. One is captive backend operation, wherein a backend operation is run onshore only, as a backend of the own organization. On the other hand, offshoring outsourcing is called third party offshoring outsourcing work, wherein companies outsource their non-core operations to some other company for cost efficiency and high productivity ratio. The biggest advantage of any location to be identified for outsourcing purposes are low input cost. In an outsourcing outfit the most significant input cost is manpower. For an outsourcing job what is required is intelligent, well educated, trained and skilled manpower. Any outsourcing activity are classified into three types of them such as traditional form of outsourcing services which are required for getting cost efficiency by cutting down extra cost, be it technical, infrastructure or manpower cost. These form a part of the direct cost cutting activity. The second type of outsourcing activity is to cut down indirect cost and again increase efficiency level. These measures help an organization to achieve business transformation. The overall objective for any outsourcing activity is not only to factor cost advantage, but to achieve economy of scale, mitigate business risk, get high level competency level and optimum utilization of resources (Engardio, Arndt and Foust, 2006) (Manning, Silvia and Arie, 2008).
In any operation, be it onshore or offshore i.e. not outsourced activities or outsourced activities; human resource is one function to handle a lot of complexities. Handling manpower in a normal multinational operation is critical in any case, on the other hand, a multinational multi-cultural business process outsourcing unit is all the more critical to handle. Different societies have their own nuances and any outsourcing arrangement is primarily designed to take the advantage of such geographical and societal nuances or characteristics.