Is outsourcing ‘good or bad’? To most people, the answer would be rather obvious – ‘Of course, outsourcing is bad! How can the outsourcing of jobs to a country like India be any good for the US economy?’
On the flip side, research conducted by a number of renowned economists has shown the opposite, that outsourcing enables a lot of companies to experiment…
The CTO of a company ABC LLC has come up with a revolutionary software that could go on to save the company $300,000 per year by way of majorly streamlining the company’s work processes.
But there’s a problem. To develop the new software, the company needs to hire 10 software developers. Now, let’s say the cost of hiring locally in the US would be $100,000 per developer. So, hiring 10 developers…
Most businesses are not ‘innovative’. It’s a universal truth.
But then an obvious question comes to mind. Why is it that most businesses aren’t innovative, when most of them do, at some point, have ‘innovative ideas’?
The answer to this question lies in the fact that there is a big difference between having great innovative ideas and being an innovative organization
Correctly estimating the size and value of the opportunity costs of your business is an incredibly difficult endeavour, but critically important for its success.
Behavioural science tells us that humans are hard-wired for loss aversion and to over-estimate the value of what we already have ‘in our hand’. As a consequence of these cognitive biases, I believe, most people have a pre-disposition to focusing on gains/losses that are more immediate…
Not outsourcing overseas can slow the US economy down, is it? I do appreciate just how counterintuitive and preposterous that sounds!
But, it’s not so ridiculous when you take into consideration what companies ‘give up’ in exchange for having a ‘hire locally only’ mindset.
When you think of outsourcing abroad, what comes to mind immediately? The answer is – cost-saving. But, despite the synonymous link between the two, there are some common mistakes that clients make when they calculate ‘how much will I save if I outsource to a country like India.’
Here are three ways in which clients frequently grossly underestimate just how much they can save when they outsource:
We all know that pretty much every large MNC (multinational corporation) you can think of outsources overseas. For instance, 50% of all Fortune 500 companies outsource IT-related work to India.
But what about SMBs (small to medium sized businesses)? Well, firstly it is worth noting that small businesses are increasingly outsourcing office-based roles/projects to countries like India and the Philippines.
In my last blog post, Why the Virtual Employee Model is Safer than Project Outsourcing , I looked at three key ways in which hiring dedicated Virtual Employees reduces your risk over project outsourcing, when it comes to offshoring.
Because you directly project manage a Virtual Employee, you retain control over your project. This ensures (more often than not) that you meet your deadlines/budget, have no ambiguity over…
In my last blog post, I looked at how, contrary to popular perception, outsourcing actually reduces your business risks.
But, there are two main models of outsourcing work. One, to outsource a project (or process; something I won’t go into in this blog post) and two, to hire Virtual Employees.
Do both of these models reduce your level of risk…
When most think about outsourcing overseas to a country like India or the Philippines, they typically look upon it as a ‘risky move’. But why? It’s rather obvious. Probably you think it’s risky because your data might not be safe, communication might be a problem, offshore workers might be less competent, and so on and so on… While it is true that these are legitimate concerns, they do not necessarily…