Niyamath Parveez

IBM are one of those companies where their name precedes them and this has seen them develop a huge awareness around the world. Read the rest of this entry »

Everyone knows by now how important Indian outsourcing has become for countries all over the world. Regardless of the industry, the benefits of halting your own production levels and shipping them overseas have aided many companies stay afloat and prosper. Given the current economic crisis, anything which a company can do to improve their status and situation has to be examined in great detail. If you are a boss of an organization and you are not at least thinking about what outsourcing can do for you then you are seriously neglecting your duties and responsibility.

One major industry which has woken up to the benefits of outsourcing is the pharmaceutical industry. The ability to ship the production of the drugs and tablets from host countries to India has made it much easier to reduce labor costs without compromising the quality of the product on offer. This has seen the drug manufacturing companies improve their financial outlook and make it more likely they will have a successful financial future for many years to come.

“The DRL–GSK deal is positive over the long term, with $25 million (Rs 117 crore) revenue from FY11 and the full impact will be witnessed by FY13. This deal enables the company to get strong exposure to emerging countries without any investments"

was the opinion of chief analysts within the industry. Given the importance of the industry and the amount of tests and regulations involved with the industry, the analysts are likely to have a great deal of knowledge about the industry.

Therefore, what they say is likely to be worthy of following or tracking. This is as true for the small firms as it is for the big firms, making for a great deal of consistency throughout the industry.

One of the major firms in the industry are Cipla, the countries biggest domestic based drug maker and they have been selling a great deal of their drugs overseas. The firm has a partnership relationship with over 21 firms, proving their ability to work with other countries. Unsurprisingly, Cipla are very much in favour of outsourcing and are very keen to do a lot more work in this area.

“Cipla has always followed a model of partnership and alliances in marketing its products, particularly overseas. We are in constant dialogue with a number of multinationals towards developing products, regulatory packages and ultimately supply of products from our world-class facilities.”

In addition to this, the following comments indicate that many other firms in the business are looking to be become involved in this market as the benefits that arise from it are vast and plentiful.

“I am confident of out-licensing at least one of our new chemical entities (NCEs) under development before the end of this financial year,”
“Our priority is not to grow top line in the coming years, but the focus will be to increase profitability,”

Anything that a firm can do to improve their financial status has to be explored and this method of production is extremely popular.

At this time of year, many people are thinking about switching to outsourcing as a means to improve their working capabilities. This is extremely true for small businesses where one person may have to do a great number of jobs. There may not be the opportunity to employ a lot of other staff on a full time basis but having some help at certain times can make a big difference to how the organization works. Seasonal work can also encourage the use of outsourcing and one of the most important times of year is the Christmas and New Year period. Therefore, who else would benefit from outsourcing more than Santa Claus?

One of the most important things that Santa Claus has to do is to make a list of who is naughty and nice. Given that this list is expected to contain the names of every child in the world, it is going to be a very long list. This may be something where there is the scope for outsourcing. If Santa Claus was to hire someone to assist with list making, it may free up more time to focus on other areas. There is also the fact that Santa is required to check the list twice, so having an extra pair of hands around to do this should make light work of the administration elements of the job.

Don’t forget, Santa does have a lot of assistance from the elves who work in his grotto throughout the year making toys for children. However, with the harsh economic climate, it may well be that Santa will make it easier for parents the world over by utilizing outsourced workers to help make the toys. It will be harsh on the elves who make the toys but outsourcing should see the labor costs of Santa’s production reduce dramatically.

Another major cost and time expenditure for Santa Claus comes in the fact that he personally undertakes all the travel himself in one evening. Using the services of worldwide outsourcing firms would make it much easier on himself. At the moment, there is a great deal of waster occurring due to the fact that Santa does not have the time to stop at every house and enjoy the treats children have left out for him and his reindeer. This means that parents will have to eat these goods themselves or throw them in the bin before the children wake up. With so many people concerned about natural wastage, using outsourcing can make it easier to give every home a little more time.

Equally, the wear and tear on the reindeers is likely to be causing them a great deal of damage so outsourcing the distribution element is likely to make life so much easier for Santa Claus and will lower replacement costs. The cost of ensuring that your travel vehicles are in fully functioning order can be very expensive so taking better care of your travel plans could save money in the long run.

Christmas is a joyous occasion but Santa Claus could make life much easier for himself if he undertook outsourcing as an option.

Although outsourcing is an absolutely fantastic tool that can bring so much benefit to a company, it can also have some down points. The fact that majority of the work is going to be out-with the control or study of your firm for large periods of time can cause problems. Who knows what is going on in certain levels of production and it may be that the standards that your firm would hope for are not being maintained. There are obviously going to be contractual elements and considerations which will hopefully take these issues into account but that may not be enough to prevent great damage or loss of face to your firm.

One firm that knows all about this situation is Microsoft Corp, who have been embarrassed on a number of occasions. The company has a very profile and have also been keen users of outsourcing in order to make the best of their time and money. Usually, it has gone very well and the outsourcing for all parties has brought a great deal of success to Microsoft. However, there have been occasions when it has not gone well and as Microsoft have a huge brand image, any mistake is shown up all around the world. This causes a great deal of discomfort and can affect the share price. There are certain things that a firm will always work hard to not damage and the share price is one of them.

The first insight into all not being well with Microsoft came when there was a problem with a Windows 7 USB/DVD Download Tool. It turns that part of the tool had elements of an open source licence in it. The use of this work violated the terms and conditions of the licence. It was placed into the finished product by an outsourcing firm, which means that Microsoft weren’t really responsible for what happened. However, Microsoft are ultimately responsible and the company has been left embarrassed by it, with Peter Galli saying;

"While we had contracted with a third party to create the tool, we share responsibility as we did not catch it as part of our code review process."

Galli is the open source community manager at the Platform Strategy Group within the company.

To have it happen once is embarrassing, twice, it becomes a major issue. This is exactly what has happened to Microsoft and this time it revolves around Juku. Juku was released in China and it an application very much like Twitter. The problem with Juku is that it featured an awful lot of code taken directly from Plurk, a software startup program. Plurk were naturally unhappy with this and made a complaint about the lifting of “code, design and UI elements” of their product.

Microsoft were once again quick to apologise and once again, quick to lay the blame on an outsourcing firm.

"We are obviously very disappointed, but we assume responsibility for this situation. We apologize to Plurk and we will be reaching out to them directly to explain what happened and the steps we have taken to resolve the situation.
In the wake of this incident, Microsoft and our MSN China joint venture will be taking a look at our practices around applications code provided by third-party vendors."

Although there is absolutely nothing new about outsourcing, the way that many companies are using are becoming more innovative. A lot of this has been driven by the need for firms to squeeze every cost to a minimum in order to stay competitive and alive in a harsh industry. The economic downturn has had a massive effect on the way that businesses are run and even when the recession is over and the economic situation improves, it is likely there will repercussions throughout a number of industries. The amount of firms using outsourcing as a solution to their problems may alter but there is still going to be a huge demand for outsourcing services and production matters.

One country that has really benefited from outsourcing is India. It is fair to say that any country that is economically underperforming is looking at India with jealous eyes, wondering how best they can replicate the economic success that has taken place in that country on recent years? Although no one thing is responsible for India being able to improve their situation in a tough economic climate, outsourcing will have played a massive part. This is agreed upon by a whole host of experts and analysts, so this is the route that many other nations wish to imitate.

Part of India’s initial success came from the fact that they were able to undercut on price so many other nations. Not every firm or business is obsessed with cost and price but a great number of them are. To find that they could massively improve their bottom line, just by shipping their workload to India was a tremendous option for companies, which helped to spark the rise in offshore outsourcing. It then became a very cyclical thing. As more people shipped their work offshore, the public interest and awareness became greater. As India was receiving more work, they were able to slash their costs and prices further. This became even more advantageous to firms of other countries, which increased the demand to send work to India. It can be seen how this cycle would keep going.

Of course, it is not possible for it continually rise, there are always other factors that will prevent this from happening and the fact that other nations can provide this work for cheaper has helped to stall the Indian outsourcing phenomenon. The major firms in India are still operating and making a huge success as well as large profits but the less successful ones are falling by the wayside. This makes perfect sense with regards to market forces and a similar situation would happen in any market which is free.

This means that outsourcing and the effects of outsourcing would occur naturally but obviously there are spikes in the behavior which makes it more likely for certain issues or incidents to occur. Outsourcing has been one of the business stories of the past decade and although it may not be as interesting or innovative in 2010, it is not going to go away.

Even though it has been a year when things have been across the board, for some organizations, it has been exceptionally tough. One such body that has not had its trouble to seek is the Arizona Department of Revenue. As you can imagine, anybody working in revenue is going to find things slightly tricky but the past year has featured some extremely trying moments. Being forced to reduce the number of agency staff employed by around a third with the threat of even more labor and budget costs to come in the year ahead, it is not a pleasure able place to work.

When staff members are placed under this sort of strain and stress, it can be extremely difficult for them and they can find it very difficult to go about their daily business. Trying to distribute the revenues, reply to all questions placed to them and ensure that conduct reports are maintained are all very trying tasks. When the body is downsizing their staff levels, it becomes even trickier.

However, it has not gone unnoticed that outsourcing can be a solution to organizations in difficult times. When downsizing occurs but there is a requirement to not let the quality or level of work diminish, outsourcing certain tasks can make it so much easier to keep things going on an even keel. This is why the Arizona Department of Revenue is considering outsourcing its tax collections. No one particularly likes paying taxes but they are necessary for the continuation of everyday life and for the upkeep of so many services that people take for granted.

The statistics for tax collection have been well considered and it is deemed to be a positive move for the Arizona Department of Revenue. Being able to put this amount of foreplanning into any outsourcing decision is likely to reap its rewards. This is shown in the positive attitude offered by management.

"Our data has shown, over the last 15 to 20 years, that when we have become a partner and collect the tax for (our clients), anywhere from 3 to 7 percent has been the increase in collections,"

was the good news offered by Rob Heimbuch.

Heimbuch is the western regional account manager for RDS, which obviously means his opinion carries a lot of weight. Not every manager in an organization is likely to have their finger on the pulse or be able to say what is really going but at Regional level, there should be a greater understanding of what is required.

Heimburch went onto further remark;

"Operationally, it's what we do from A to Z, and although the Department of Revenue does it as well, the DOR does lots of other things. Right now the Department of Revenue, due to staffing shortages, is not able to get information back to towns and cities in what I would call a timely manner."

There is no guarantee that this will be the only change required but there is every chance that this move will help to put the Arizona Department of Revenue back in the driving seat.

Although the current economic situation has led many firms to re-examine the way they control their use of labor, it is not all been positive for outsourcing firms. The major players in the industry have been able to survive, picking up new clients and customers along the way. However, for smaller firms and individual freelancers, the story is not so happy. It is becoming a massive struggle for everyone to get enough work to continue. And of course, with the financial climate being what it is, there is a lower level of support for people in this situation.

Two industries that have been hit hard by these recent developments are business services and single person IT providers. It is extremely difficult to compete in a shrinking market place and even though some predict the recession is ending, it may not be soon enough. Many industry experts say there is a time lag involved for this sort of work and method of working. The PCG, a trade group for freelance working staff, have announced that their members are finding times extremely hard. It is said that just under 70% of the members of the PCG are finding work very hard to come by. This is a large percentage and indicative of a market that is still suffering.

The PCG, clearly trying to raise the spirit of their troops, made this statement;

“Due to the fact that IT contractors tend to work for big clients, such as financial institutions and government departments, it is more likely that in the recession they will shed contractors as a savings exercise.”

“There is a greater propensity for big business and large departments to outsource and look for the most efficient way of managing this procurement process.”

Their poll was carried out in advance of National Freelancer Day, which was not as happy an occasion as many freelancers would have liked. One issue that has affected Freelancers is the fact that other similar styled jobs have not been affected in the same way. Freelance journalism is a job that many would consider to be at the mercy of the economy and recession but compared to freelance IT, it has appeared positively bullet-proof. Seeing similar minded or skilled workers thriving whilst you are suffering is deeply upsetting and this has added to the malaise within the IT sector.

There are a great number of IT jobs which have to be completed onsite and in person, which means that a lot of tasks are unable to be outsourced to offshore locations. This would have raised the hopes of many working in the industry that jobs would be available but this does not appear to be the case. When times are hard and everyone is clamoring for the smaller amount of work there is, IT can be a very dangerous and difficult business. If you are considering a job in this field, it would be wise to consider it very carefully before signing up. Outsourcing is a great solution but sometimes there is not enough to go around.

With more and more University and colleges opening up in America, there is an increased level of pressure being placed upon the teaching staff. This had led to a number of problems facing the academic bodies in the United States of America. Like most labor related issues in America, the most obvious answer seems to come from utilizing outsourcing resources. The best way of doing this has seen many lecturers, teachers and tutors outsourcing the marking and correcting of papers to foreign professors who perhaps have more free time.

Like many other aspects of outsourcing, India is seen as the home of quality work in this respect and the vast majority of outsourcing work arrives here. This is of much benefit to the professors in India as it is to the ones in America. The Indian professors find that they are able to supplement their income by doing this additional work. The current economic climate has made it vital for everyone to maximize their income and this option is a fantastic one for tutors. It allows them to use their knowledge and expertise but can also encourage them to develop new levels of experience. The motivation to earn more money is encouraging professors to develop new skills in other areas.

One of the main people behind this move has a lot of positive opinions about carrying out this type of work;

“The concept is gaining popularity in India as it not only allows the professors to make some extra money but also helps them get in depth knowledge on a particular subject,”

which is the opinion of Madan Padaki.

Padaki is the Co-Founder and CEO of MeritTrac, a company based in Bangalore which carries out such testing. The fact that opinions like this are coming from such highly respected people in India can only be a sign of the benefit it is bringing to all participants.

Rakesh Shukla has a strong opinion about this subject. Shukla is the current managing director for an organization called The Writers Block. The Writers Block provides publishing and communication services;

“Technical communication space is growing fast and rising up the value chain in terms of delivery for the domestic and global customers. It is also an enhanced return on investment proposition, aided by superior technologies and tools.”

It is not just the Indian staff members who get the benefit of this type of working but the benefits to the American staff needs to be outlined as well. The fact that there is a depth of professors in India means that there can be a level of quality, offering a solution to every budget.

“Outsourcing such assignments to India is advantageous to US universities as they get valued in three-five days against 8-10 days in the US. Also, richness of grading is higher as it is done by a qualified professor. We make sure that the scale we develop is not ambiguous.”

There will always be critics of outsourcing but the benefits of this style of working can help provide a better teaching system for the developing minds of America.

If you are looking to learn more about outsourcing, it is not unreasonable to type the term into Google and see what you can learn from there. One way to find out more about outsourcing is to use the News facility but by and large, people will want to know how or where outsourcing can impact on them. If you run a business, it may well be that outsourcing is something that can really help your company reduce its labor costs without the business too much. Therefore, any business leads which may arise from this Google search could be of great value and benefit.

One thing that immediately jumps out at anyone who performs this task comes from the advert bar at the side. Google uses Adsense in order to allow tailored advertisements which are relevant to whatever the person is searching for to be found. One thing that is of interest is the advert which promises to tell people how to outsource their work to India. India is easily recognized as the home of outsourcing offshore which makes if highly attractive to anyone looking to find out more. After all, why shouldn’t you look at the market leader as they are more likely to have all the information that you really need.

The Virtual Employee site provides a great deal of information about outsourcing work to India and the costs involved with it. In fact, they are very upfront with regards to costs and try to offer a gauge for any potential customer. The site is offering $895/£495/ €645 a month as the average cost for hiring a worker in India, which obviously needs to be compared to the cost of paying your own staff member for the same period of time. If the financial element appears to be of value, it is worth examining the offer further.

The blurb of the company may be enough to set your mind at rest;

Employ Professionals: Hire a dedicated full time employee to work for you from India for $895/£495/ €645 a month (Typical Cost). Your employee will work for you from a VirtualEmployee.com office. VirtualEmployee.com is a US company that will also manage your employee(s) in accordance with your instructions from our offices in India.
Offshore Any Office Work: VirtualEmployee.com will get the employee(s) with the qualifications, credentials and experience you want in any field for the work you want to offshore.

As Virtual Employee appears to be the middle-man in this arrangement, it is fair to say that lower costs may be found by searching elsewhere. However, the opportunity afforded by Virtual Employee reduces a lot of the workload and stress caused by looking for outsourcing staff, so many companies may find it worthwhile to pay the higher fee. A substantial saving can still be made by using the Virtual Employee staff but the company is free to focus on other tasks at hand.
The need for outsourcing and how important it is to your firm needs to be understood before knowing what the best package for you is.

A warehouse is extremely important for many companies and is the backbone of a business for many firms. If the company provides stock and supplies to consumers, there is a need to store them somewhere. Depending on the make-up and build of the company, there may be a large warehouse requirement on site. Some firms have chosen a Just-in-Time option, which is a good example of outsourcing. This means that the elements contained within the supply chain are produced as and when required. This is of tremendous value and benefit to the company but it places a lot more pressure and importance on the other elements in the supply chain.

However, in recent times, there has been a larger awareness of data warehousing and where firms store the vital information regarding to customers and their processes. When it comes to storing data, it is apparent that there is no need for a warehouse facility but there is a great need for protection and security. Ensuring that customer and details information are kept safe and secure is one of the most important issues for any firm. If this information is not safely maintained, the firm could find themselves in serious trouble with the law and facing a hefty fine.

One of the problems may arise from the fact that certain firms may be unaware of what the legislation requires from a firm operating with a mine of data information. Ignorance is no excuse in the eyes of the law which means that it can be very costly if any mistakes occur. Therefore, any company undertaking a risk appraisal would realize there is potential for a great deal of damage to be done. One of the best ways the company can get around this is by using proper use of data warehousing outsourcing.

Hiring a firm that specializes in this is likely to give a wealth of experience at the firm’s fingertips. This can save a great deal of time and money for any firm and in the long run, could save them from receiving a large bill. Considering the economic and status impact of a firm and how vital it is to be maintained, a reasonable level of expenditure in the short term may bring great long term benefits. Even though most firms are trying to consider the short term benefits, the long term impacts may convince many that the benefits of data warehousing is worth pursuing.

One of the problems about outsourcing is that it has become pigeonholed in recent times to call center jobs and limited supply chain and production tasks. The reality is something extremely different as outsourcing can be used for virtually everything that you could ever imagine or want. Data warehousing is not something that is required by every firm which means that the number of suppliers in the industry is smaller than compared to some aspects. However, with the importance of securely holding this information, finding a reputable data warehousing can make all the difference to a company.