Niyamath Parveez

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.

Being one of the biggest companies in the world means that a firm can withstand some bad news and negative bubbles from time to time but there still has to be some management of the situations faced. Around the world, the fact that a number of Coca Cola employees in the North of Ireland are facing losing their jobs is hardly going to rock the company around the world but the personal loss on individuals, families and communities in the local region is going to be huge. Of course, this is going to be balanced out by the fact that another area will benefit and prosper from the number of jobs that are being brought to their area through the benefits of outsourcing. There is always a flip side to decisions taken and the anger and resentment that is currently brewing will be balanced out by the happiness that will follow the new jobs. However, this will be of no comfort to the people who are currently facing losing their job.

This has led to the local Labor council in the North of Ireland making recommendation that Coca Cola should at least offer redundancy packages alongside the level of previous packages they offered. From the company’s point of view, they would argue that the reason behind the outsourcing decision is an economic one and if they acted upon this recommendation, their benefits would be less than projected. It is still likely that this money would be a drop in the ocean compared to the overall turnover that the Coca Cola company experiences but the best firms are always thinking about the bottom line, even if it is not a popular move for some people. It is likely that Coca Cola sales will drop in the local area where the people affected by this move will switch their allegiances to Pepsi. This move is not going to be enough to alter the axis between Coca Cola and Pepsi sales figures but it is a way for a small community to exert some influence.

The current situation in the North of Ireland has been exacerbated by the fact that 130 or so workers have taken strike action in their dispute against the Coca Cola Company and when this happens, it very rarely ends well for the striking staff. French employees have a strong history of taking strong and powerful industrial action but in Ireland and the UK, the same success rate has never been achieved. This does not bode well for the future of the plant with Coca Cola likely to cite the time lost in the past month as reason to not offer the same redundancy packages as previous former Coca Cola employees received. It is a harsh environment and both parties will be claiming that they are in the right but it is likely that nothing will deter Coca Cola from outsourcing their work abroad to reap the benefits of lower labor costs. They may be one of the biggest firms in the world but even Coca Cola are not averse to making as much profit as possible.

The opinion on snow can differ greatly depending on the age of the person or the location where it falls. Most children love the thought of snow, being able to make snowmen and play around all day. It is also a good chance that they will get a day off school so it is clear to see why children spend their days praying that the first few snowflake falls will develop into a major downfall over night. Adults may have a different opinion about snow though, realizing the difficulties of getting to work and of the impact it can have on their driving and other aspects.

This is what local councils need to consider and need to be aware in advance how they are going to deal with any issue that may arise. Long term weather forecasts make it possible for people to be ready at an earlier stage but these are not always fool-proof, meaning some organizations need to be able to react quickly and efficiently. If a council or government body does not have a large amount of resources at their disposal, they may struggle to respond in time to provide an effective clearing of the snow and gritting of the roads.

This is where it may be sensible to consider the benefits of outsourcing to ensure that the clearing of snow can take place no matter how quickly the snow falls. This is the option that Chicago is looking to put in place for this upcoming winter in an attempt to ensure that their citizens and businesses will be able to go about their business with the minimum of frustration or interruption. There is never going to be a 100% foolproof method of outsourcing this sort of provision but if it can work for the vast majority, then it will be money well spent for the local Chicago economy.

The amount of working days that are lost in cities that experience major snowfall can place a tremendous drain on an economy, derailing the attempts of people to get to work and make money. There are a number of jobs where working from home can take place without having any detrimental effect but this is clearly not the case for every job. Retail based jobs need to ensure that employees can get to the store and obviously that the consumers can make their way to their store as well. If neither of these groups can get out of the house and travel about town easily, then the economic effect is going to be quite dangerous and potentially ruinous.

Chicago hopes to make a decision at the end of October when the tender period ends. At the moment, there are two outsourcing tenders with the council and they differ greatly. One is based around a flat fee for the job for the winter period whereas the other tender is based upon a rate per hour. Depending on the likelihood of snow these two bids could differ massively which means there is a lot for Chicago to consider before making their final decision.

Whenever people are staying in hospital, it is obviously a very trying time and they have a lot to think about. The point of being in hospital is to hopefully become better and improve their health so it is important that everything that can make them better is taken care of. One of the most important things that a person needs to improve their health is food as they have to keep up their strength and energy. Receiving nutrients and vitamins is essential for anyone but even more so for those looking to recover from an illness and therefore, the supply of quality food is extremely important for any health care provider.

However, as there are many budgetary and financial restraints on a health care provider, the provision of food may be far down the list when it comes to priorities. It is fair to say that buying medicine and providing proper care is what will take the majority of providers’ budget so there are often cutbacks and restrictions placed upon the provision of meals. It can also be forgotten about in the greater scheme of things so a solution for the health care providers can come through the means of outsourcing.

The benefits of outsourcing have been well stated and have helped many companies and businesses reduce their costs without compromising the quality of their service. Therefore, the benefits felt by these firms are able to be experienced by health care providers and this is what is hoped for in India. India, as a nation, has greatly benefitted from outsourcing which has brought a lot of jobs to the country but it is still a bold move to take.

This is why India has turned to Mars Developers Suppliers who have agreed to provide lunch and dinner to all patients for Rs.20 a day. The main provision of the meals would see the patients receive rice, vegetables and dal every day with products like fish and eggs being made available on a weekly basis. It is vital that Mars Developers Suppliers are able to provide food that will aid the recovery process and ensuring that patients receive their recommended daily allowance is a key part of the agreement for this deal. There are obviously going to be individual patients who have special dietary requirements or will be unable to eat what the vast majority of people will be given so there is a need for flexibility from the food provider.

Allowing an external partner to take over the running of the food provision should enable the health care provider to focus on their core strengths whilst maintaining a quality of provision to the people who are in their care. It is fair to say that outsourcing is becoming a popular method of improving the services provided by a firm and more government departments and health care providers will turn to this solution. If the Indian experiment works well, expect to see many health care providers around the world continue in this manner with outsourcing playing a vital role in the provision of food in the health care business.

It can’t have failed to escape anyone’s attention but the past few months have been particularly rough on the Labor government in the United Kingdom. The credit crunch has caused great difficulties for all governments but the British Members of Parliament have had it extremely rough and the scandal over inflated expenses has created a huge division between the population and the people in power. These factors as well as the growing apathy that has enveloped Britain since Tony Blair first swept to power has reached a crescendo and it is extremely likely that there will be a change of government in charge of the country. The UK is not a two party system like the United States of America but there are only really two parties capable of winning an election so this means that it is extremely likely that the Conservative party will be in power when the next election comes around. There is the definite feel that it is time for a change in Britain and the only feasible party to take over will be the Conservative party.

This will lead to a number of changes with regards to how the country is run and many of the decisions with one being an increasing propensity to use outsourcing. Regardless of which political party is in power there is a huge need for administration and backroom staff to do many of the jobs and this can be seen at the Houses of Parliament and in the departments own buildings and offices. However, the Tories have announced their plans to outsource the administrative tasks for the government and gain the benefits of outsourcing.

It makes no difference what the political leanings of a person are; such a move is undoubtedly going to cause some trouble for constituents and members of the public. The Conservative party has a traditional backing from the middle class and right wing that have shown distrust towards outsourcing, unless it brings money to their companies. A key reason for this is that outsourcing has traditionally been seen to be heading offshore taking jobs out of the country and to other lands, something which the right-wing based followers of the Conservative party found difficult to swallow.

However, the benefits that can arise from using outsourcing to bring an extensive level of experience and cost saving to any firm or organization should ensure that any negative side or issue can be overcome. It is also true to say that many local businesses are now becoming part of the outsourcing market, so there is every chance the firm hired to provide the local outsourcing service will be based locally and able to hire local citizens. This is the sort of action that could prove to be a huge success with local constituents which is obviously something of great interest for a political party. It doesn’t look as though there is anything that will stop the Conservative party from gaining power after the next UK general election but this move will do them no damage at all.

One of the most important things in any firm or industry is having the proper back-up and regardless of what you need to keep and how important it is, a failure to have a proper plan B is sure to be your downfall. Given the concerns over data protection and freedom of information and all the other legislations that cover the maintenance and storage of personal details, a failure to keep data safe and easily retrievable could land your company in hot water and facing a huge bill. Given the current financial climate, this is not the sort of expenditure that any firm can legislate for or ride out comfortably, so preventive medicine is easily the best solution.

It may sound easier said than done to be more proactive when it comes to protecting data and most firms do not realize they actually have a problem with their storage until it becomes too late but waiting until disaster strikes before setting up a backup plan is far too late. When you consider the different ways that proper storage can be undertaken in order to keep the data safe from harm, it may be worth reminding people about the benefits of outsourcing.

Okay, the concept of outsourcing definitely sits easier with help-desks and call-centers and far flung offshore companies but that is not even half the story when it comes to the benefits of outsourcing. There are many outsourcing firms operating in every country and all major cities and hooking up with a local firm and forging a new partnership could bring a solution to all the problems that storing data may entail.

One issue of the credit crunch and current recession is that firms are looking to reduce their costs in any way possible and it may be that storage is taking up a lot of your office or warehouse space. This space doesn’t come for free and whether its an area you could give up the lease for or use for a better purpose, undertaking an outsource solution to storing the data, could release the opportunity cost that comes with maintaining your own data. A local storage and record maintenance specialist would be able to apply their skills and experience to maintaining your data safely whilst saving you a great amount of money.

Using a local specialist will also ensure that you are complying with the legislations and guidelines that your firm needs to comply with, which will be a weight off any managers mind. There is a need for all firms to be aware of the current rules on data protection but with so much to consider, it can be easy to forget or miss these guidelines. Using the services of a local outsourcing storage firm will grant you access to the methods of storing applied to many firms and they can usually be relied upon to get it right. This extra peace of mind can be worth the cost of the outsourcing as the consequences and costs if it all goes wrong may not be worth thinking about.

There is no doubt that when used well, outsourcing is a tremendous way for a firm to make cost savings and to gain valuable experience and expertise in certain key business areas. It would be perfect for a firm to have experts and market leaders in every department but in the ideal world this is not a likely situation and certainly not one that would be cost effective to obtain and maintain. Focusing on key strengths and then gaining the support and assistance of external partners is a key reason why outsourcing is such a strong tool for a great number of organizations. The financial benefit can never be overlooked when it comes to business, particularly in the current climate but sometimes there needs to be a greater awareness of the overall benefits to a business.

This means that when a firm is looking to outsource some of their workload or departments, there needs to be focus given to what experience and expertise the new partner will bring to the agreement as opposed to can they help slash costs. Criticism of the trend towards outsourcing focuses on the lack of personal touch that some business are able to apply to their customer base and a growing displacement from the everyday running of the industry. This is not the case for every firm but if payroll and inventory systems are completely outsourced and the replies and responses are limited, how can a firm react to any problems that arise with their customer base?

This is leading to a number of firms of placing a middle-man or conduit role or department in place to liaise with the outsourcing firm to obtain a better understanding of their work and how they progress the work. Many firms look to utilize the benefits of outsourcing as a way to completely remove workload from their main office and to reduce staffing levels but there may well be a trade off in quality and ability to fully respond to customer questions.

This extra layer of management and control may go against the principle of outsourcing to many people but to make an overall saving, this tighter control of systems is deemed to be vital for some industry experts. With modern technology updating at a rapid rate, the costs of maintaining software systems and computer hardware may inflate expenditure to such a level that savings on wages may be nullified and the company no better off. Being able to have someone in control at the outsourcing side and determining where and when the purchases of technological advances are required may be crucial to maintaining the high level of benefit that people expect from outsourcing.

The moral of the story is that, outsourcing remains a fantastic way to cut costs and get experience on board but it has to be done correctly and not just outsourcing for the sake of outsourcing. Like in all business deals, proper care and attention has to be done to ensure that any potential partner will provide benefit to both parties and that cost and quality benefits can be obtained.