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.

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.

Not everyone knows what Search Engine Optimization (SEO) is but if you run a website, it is one of the most important things to understand. Of course, if you have no knowledge in this field, it can be hard to gain it. Some people may not have a knack for learning in this field whereas other people will not have the time to devote to understanding the nuances of outsourcing.

This is why a great number of firms are considering outsourcing their SEO work and one of the main companies providing this service is cWebsites.

There are obviously a number of rival firms to choose but Virat Shah, a Senior Analyst outlined the positive reasons why outsourcing SEO can be right for you. Her talk at the annual SEO Press Meeting in Hungary was well received and introduced a new concept to many listeners.

“There are a surfeit of search engine optimizers on the planet that declare to tender unparalleled service to inflate the SERP’s and Page results of different blogsites. Conversely, very few of these technicians are well capable to declare what they sermonize. Choosing for a counterfeit SEO Company can be a solemn waste of funds and afford the website to lose out on thousands of dollars”

"When it comes to SEO services, everyone desires to be a businessperson. Nonetheless cWebsites is a unit that brings age of business experience into the state where they make up the newest and innovational strategies to obtain results. All websites penury adult maintenance, if they require acceptable results. At cWebsites, the squad of dedicated enthusiasts performs continuously to image for off and on page improvement that give assistance websites, portals and blogs attain zealous rankings on top search engines."

It can be difficult to try and convey the reasons why outsourcing is being taken, but a leader who can clearly detail their methods and decisions will be respected. This is exactly the case here as Virat Shah further explained;

"the squad behind cWebsites are experts in search engine placement services and acquired a undeviating grouping that is razorbacked up with dedicated payment services. Not only is it catchpenny but it is a top level assistance that remains unmated with any separate search engine placement services India. Statistically mumbling, 80% of all Indwellers and English webmasters outsource their search engine placement services to Mumbai. cWebsites holds a bankable deal amongst these clients."

Shah continued by outlining the ways her company will help firms increase the search engine rankings;

"the intact team at cWebsites works on a daily component preparing the optimal keywords and making back-links that deploy single visits to a computer's website. Hosting relevant matter on premium accounts will create the acquisition to be unconventional and of exquisite caliber. These in work will an encouragement up of rankings on Yahoo and MSN.”

Even if you decide to not use outsourcing for your SEO needs, following the wisdom of Virat Shah should enable any user to get off to a strong start in developing their own SEO system.

There has been a suggestion that the Indian outsourcing fad is coming to an end. With so many other nations realizing the financial and economic benefits that have came to India through outsourcing, it has been harder for India to compete effectively. Much like India was able to undercut and out-compete the larger nations with regards to labor costs, smaller developing nations have managed to do to India. This is very much in line with cyclical nature of economics and would not have come as a complete surprise to industry experts. The successful firms will find a way to keep on top or be attractive to other firms and the smaller and weaker firms will fall away.

However, the stories about the death of Indian outsourcing would appear to be greatly exaggerated. There have been enough positive news stories in recent weeks to indicate that India will remain at the forefront of outsourcing services around the world. As stated, the firms who are able to provide quality services to other companies will remain in high demand. This is due to the fact that many firms are realizing that low labor cost is not the only thing worth pursuing, there are other aspects which are desirable too.

One of the ways that India is managing to stay at the top of the outsourcing tree is because there are still firms around the world looking to move into outsourcing. For companies who are unsure of what to do or where to go, it makes sense to look for the market leader. By and large, choosing the companies widely recognized as being market experts will provide customers with a level of confidence that they are making the right decision. This is of great benefit to the new customer and a great reward for being recognized as a market leader.

Some of the companies who have moved into outsourcing recently and therefore very late in the game compared to some companies include Renault, Volkswagen and Harley Davidson. These are all huge brands which further add to their need to associate with large firms who can handle high pressurized orders. They are all interested in the engineering industries and this should ensure that this industry in India will reap the benefits for years to come. There will always be a shakedown to lower levels, which means that emerging companies will be able to find a niche but when it comes to top level companies, India remains the top choice.

In fact, this continued reliance on Indian engineering outsourcing is said to achieve a sum in the region of $55bn by the year 2020. This is just over 10 years away, so it is not so far away in the future that it cannot be imagined. The past ten years have moved rapidly and the next ten years are likely to be the same. The top outsourcing firms will be the ones who have the income to invest in new technology and this should help them stay at the very top end of the market.

India has rightly built up a great and deserved reputation for being the premier location for outsourcing resources. The country has benefited greatly from the influx of so much work, which has created a cyclical effect in bringing further work and increasing the talent of the workforce in the country. As the possibility of further work continues, training and development of the population has risen which is why so many companies are very comfortable in allowing Indian companies to handle all of their outsourcing needs. However, many countries have seen the benefits that India has obtained by working in this manner and decided they would like some of this action as well.

This has seen many countries around the developing world try to imitate and replicate the success of India and its outsourcing work. One of the initial reasons why India was a success for outsourcing was due to the way they were able to undercut other nations. Price is always going to be an important factor for any business and being able to get work completed for a low price is of tremendous benefit. This has alerted many nations and companies to the fact that if they want to take work from India, they may need to undercut them. It is a tough market to operate in but the way that India achieved success in taking work from other nations will see other nations take work from India.

One recent example of India losing out on work they would have previously obtained has occurred in Egypt with the company at the heart of the situation being India. Wipro Technologies, even though they are based and located in the outsourcing capital of the world, has sent a great deal of work from its Indian office to its equivalent office in Egypt. Given that the company had office space and resources in Egypt maybe means that the situation is not as concerning as the initial headlines would suggest but the fact that this work is transferring out of India is clearly a news item. If a trend develops, India may need to reposition themselves with regards to the services they provide to customers around the world.

Even though Wipro has a presence in over 50 countries around the world, the percentage of the workforce who is based offshore is extremely small. That is why this announcement that the Egyptian workforce will be expanded has been met with surprise by a number of analysts and experts. It is reasonable to think that if one of India’s top firms can act in this manner, then others may follow suit.

Given that India is already under fire from other countries, which are growing under increasing pressure to keep more jobs in their own home land. Too many people are losing their job because of the current financial climate and outsourcing is seen as a scourge by many people. Of course, it is merely market forces working on a global scale but job losses are very emotive and people have a right to be angry at losing their job for price alone.

In these troubled economic times, short term deals which look great may not be the best thing in the long run. Companies obviously have to work harder to appeal to a customer base to make sales but with so many firms in the mix, how can they compete? One way that many firms decide to entice customers in by is through lowering prices and this gives consumers something to think about. Firms are struggling but so are consumers so any deal which threatens to slash prices and give consumers more for their money is sure to look good to many people.

However, the firm needs to think if these low prices are sustainable. If not, there could be even bigger trouble ahead if they stick by the low pricing model. Yes, the opposition may be getting blown away by this tactic but income is not sufficient to match the outgoings, the final outcome is only going one way. This will be against the firm so whilst short term price drops can be of benefit, the longer term prospects have to be based around offers that are more substantial. Of course, if a firm could lower their costs, they may be able to sustain lower prices.

The market for mobile phones in India is extremely competitive and with the population size, it is evident why so many firms are keen to grab a slice of the action. There will be niche areas and products to produce which could provide a slight advantage but cost is the most eye-catching area for consumers. The price of the mobile phones or the tariffs are opportunities to snap up market share but another way is to lower the cost of each call. This is what is currently being done by many of the operators in the market but not all think it is the best solution.

Still Bharti, a huge player in the Indian mobile phone market with over 110 million mobile customers in the nation, have announced that they plan to lower their costs through the medium of outsourcing. This is a tactic that has been used all over the world and is recognized as a major factor in the economic growth of India in recent years. The country has welcomed outsourced jobs from all over the world and this has given the Indian population the opportunity to economically thrive and prosper in harsh times.

The decision by Still Bharti to outsource has been made with the company confident that others will not be able to sustain their current low pricing policy. Making savings within the production side of things will give Still Bharti a stronger chance of lowering their overall costs, and providing a more sustained low level of pricing to the consumer. Thinking with respect to the long term is a major separation between the firms that succeed and the firms that lose out. Having the confidence to think of long term shows; Still Bharti is likely to be around in five years time.

There are some industries where people have a lack of respect for the people working in authority but would be very lost without them. The most obvious one is the police and law enforcement agencies that provide safety and security but a comparison can be made to lawyers and solicitors. Whenever people are in potential trouble and need representation, there is a huge need for solicitors to provide the advice and assistance and perhaps even representation in order for justice to be best served.

Sometimes it is not even about earning a not guilty verdict for the person who has been charged with the crime. Justice is a wide term and ensuring that they receive the right punishment for the crime they committed is as much as what solicitors do. Of course, the fact that they make huge profits and charge such a large price for their actions is what annoys a great number of people. However, if you listen to the lawyers and solicitors, it is not as simple or as straightforward as this.

They are quick to inform people that they too have been affected by the economic recession that is blighting the world at the moment. Everyone is suffering and it makes sense that even lawyers would be struggling to keep their income greater than the costs. If they are unable to increase their income then the solution must resolve around lowering their costs. This is sometimes done by making any administration staff redundant but a firm needs to have administration in place in order to be able to do their job. With so many different cases to take care of and so many court visits to remember, a law firm requires good administrative skills to perform well and provide their clients with a quality service.

This has been made possible by the rise in outsourcing firms who are offering a provision of law back room services. The great thing about these firms is that they are usually ran and employed by staff who have a great deal of experience in working in the law industry which means that the work is being carried out by skilled staff. This is a tremendous boon and ensures that the law firm will have peace of mind about the work that is being carried out. Saving money is obviously very important but if the quality of the work being carried out is extremely poor then there would be no benefit in carrying this outsourcing task.

Recent weeks have seen three reasonably well known law firms state their intention to turn towards the world of law firm outsourcing. Hammonds, Travers Smith and Halliwells have all intimated that they intend to look into the possibilities of outsourcing. There is even the chance that this work may be outsourced all the way to India as the benefits of offshore outsourcing are able to provide an even greater benefit to law firms. There will obviously be displeasure at the UK losing jobs but that is not the concern for the firm at hand.

Percentages can sound quite large but everything has to be considered in relative terms and viewed in concept. A small firm may outsource 75% of their workload, which is obviously a huge factor for them but if a massive firm outsources 5% of their workload, it may still be a larger amount of workers or money involved. This should reinforce the fact that statistics and percentages, by themselves, prove nothing and there has to be an element of context attached to all figures and findings. Therefore, the news that Airbus is aiming to outsource 20% of its work by 2020, is eye-catching but is it really going to be a changing aspect for the firm?

The first step of putting some realistic figures on the findings is to look at the number of people the firm hope to add to their employment circle. The first step of this move will occur in 2012 where the first is hoping to dramatically increase its current production facility in Bangalore. The whole world seems to have moved to India in the hope of gaining benefits and lowering their labor costs and Airbus are no different. At this moment in time, there are currently 120 employees employed by Airbus but this is going to change dramatically. Within the next three years, the figure of employees based in Bangalore is expected to rise to 400. An increase in this size would be noticeable in any firm, so it is fair to say that sizable changes will be happening for Airbus and how they undertake their business.

Of course, for every positive action, there can be an equal and opposite reaction and it would be natural for people to think there may be other job losses before these new jobs appear in Bangalore. Again, this would not be a surprise because so many firms around the world are doing the exact same thing, which means that to not outsource means to risk being left behind. There are obviously a number of emotive issues when considering outsourcing and job losses is always going to be a tricky situation but if this what is required to keep a firm at the top of their game, then this what needs to be done. To stand still and let your opposition and rivals reap the benefits will lead you to falling behind and this is something that Airbus cannot risk.

Critics of the move towards outsourcing, particularly in the airplane industry point to some notable failings for other major firms who have taken this route. Boeing found that there were some issues regarding the quality of some of their production features and when dealing with airplane manufacturing, safety cannot be compromised. Saving money is an important issue for all firms to strive for but the pursuit of profit cannot come in place of safety and high quality. The eternal trade-off between the different elements involved with outsourcing will ensure that firms need to consider a lot of aspects before choosing which outsourcing partner to work with.

Not many people in Britain have trust in banks or the banking system these days but the one where they have a lot of mistrust towards is the Royal Bank of Scotland. Such is the hatred towards Sir Fred Goodwin, the former chief executive of the group, who has coined in huge bonuses despite being at the helm for the banks demise; his homes have been attacked by graffiti artists and local thugs. Goodwin has spent a lot of time out of the country but this has not dampened public anger over him and this looks set to continue for a long time to come. The bank is now majorly owned by the government, over 70% is in the hands of the government but this does not appear to be an indication that controversy surrounding it is going to die away at any point soon.

Job losses in the banking industry have come far and wide in recent years and have been the source of much unhappiness. When the pension and bonus payments claimed by the fat cats in charge of these organizations are discussed, it is inevitable that people at the bottom end of the market who have lost their job will feel angry. Given that RBS is now in the hands of the government, the news that the company may be looking to outsource a large batch of its work is not going to be met with public acclaim. In fact, a whole new degree of public hate and animosity may be on the cards with regards to this famous bank.

The company has a huge need to trim its labor costs and sees outsourcing as a fantastic way of doing this. The organization has so many backroom jobs and maintenance projects that streamlining their actions and utilizing outsourced skills at a far lower rate of pay is a solution that will be a great help. For any firm needing to rapidly and drastically reduce the amount of money it pays on labor, outsourcing to a location like India is a great solution. It just may not be a popular one with the people who lose their jobs, their friends and family or indeed the local community who will also feel the tremors of job losses. The overall aim of lower labor costs needs to be balanced out with the public needs but when you have to reduce costs by over $4m before 2011, it is hard to hear the cries and pleas of those being made unemployed.
RBS does appear to have a strategy for their outsourcing plans and they mainly revolve around the non IT elements of their business. This should allow them to keep a safe control over the data protection requirements they need to adhere to but should allow them to benefit in other areas. It is far too early to say whether RBS will be successful in cutting the costs they have aimed to but outsourcing key tasks to India is the right move for doing so, even if it is not the popular choice.

When Barrack Obama swept into power as American President, the optimism in the United States, as well as all around the world, was very noticeable. The fact that a black man was voted in as President of the United States gave hope to many that change was about to take place in the country which has so much impact all around the world. There was a genuine belief that health care reforms, the trend for war and so much more would be re-evaluated in a new light and hopefully dealt with better than the way the previous regime carried out its business. Yes, many people all around the world had great hopes for positive change from America but it should be remembered that one of the key factors that Obama was elected President was the fact that time was right for change. This means that there was an awful lot wrong with America, a lot needed fixing and when politicians try to improve matters, there are inevitably a lot of tough decisions to make.

Given the current economic climate, employment is a massive concern to people everywhere and America has been experiencing rising unemployment levels. In order to combat this, one of the areas being examined was outsourcing. In a time of economic hardship, outsourcing brings a tremendous benefit to a firm in the fact that it allows them to reduce their labor costs without compromising the quality of the service they provide. This should ensure that firms still make sales to firms but are able to do so at a lower cost, saving money. This is great for firms but very bad for the employees and their local communities. As the benefits of outsourcing work usually means that entire factories, offices or production lines are closed down, it is easy to see why outsourcing has a hugely detrimental effect on communities. If the major employer in a small town, village or city ships their workload off to a foreign nation, that locality is potentially being destroyed in one business deal.

This is something that President Obama needed to act upon to remain well thought of by the American people and this is why he has made a number of attacks on foreign outsourcing. There is nothing wrong with outsourcing itself said Obama but could it not be undertaken in America? This way, the jobs and economic benefit could be of benefit to some of the citizens in America and would reduce the economic slump that was being experienced. A rallying cry was say no to Bangalore, say yes to Buffalo.

It was easy to see why Bangalore was singled out in the comments made by top ranking American officials. India has long been recognized as the world leader in offshore outsourcing and rightly so. The nation has offered a skilled and hard working labor force at a cost that is considerably lower than is available in most Western countries. An offer like this is too good for many firms to turn down and has seen India rank extremely well in offshore outsourcing reviews and recommendations.