This document discusses outsourcing, including what it is, why companies do it, and how to implement an outsourcing strategy. Outsourcing involves transferring some internal work to external suppliers. It can help companies reduce costs, streamline resources, and gain expertise in non-core functions. The document provides tips for defining outsourcing needs, selecting partners, and maintaining clear communication during the outsourcing process. India is one of the most popular locations for outsourcing, particularly in the IT and business process outsourcing sectors. Choosing the right partner is essential and requires validating claims, checking reputation, and ensuring experience in the needed areas.

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A Brief About
Outsourcing

2. STRUCTURE / AGENDA
What is Outsourcing?
Why Outsource?
How to Outsource?
Where to Outsource?
Choosing the Right Partner
Some Interesting Statistics
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3. WHAT IS OUTSOURCING?
Outsourcing means transferring portion of your work to outside suppliers rather than
completing it internally.
It’s an arranged situation where one company provides services to another company.
Outsourcing includes both foreign and domestic contracting and offshoring.
When businesses need expert skills, which they don’t have within their organization,
they often turn to outsourcing.
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4. WHY OUTSOURCE?
Outsourcing helps you focus on your core competencies.
Reduces the operational costs.
Helps you streamline your resources and funds.
Reduces the need of full time positions which in turn saves time, resources and reduces
payroll.
Helps you discover quality services.
You gain a competitive advantage.
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5. HOW TO OUTSOURCE?
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First you need to define what stays in-house and what needs to be
outsourced.
Finding a right outsourcing partner is extremely important.
It means to verify that your requirements correspond to their
specialization.
You need to maintain clear communication between you and your partner
while outsourcing, do not leave anything to assumption.
Prepare the most detailed “Statement Of the Work”, it helps you avoid any
confusion later with the partner.

6. WHERE TO OUTSOURCE?
More than 60% of total global outsourcing market is composed of IT workers.
India has become a hotspot for outsourcing, with 59% of total employers employing
Indians worldwide.
6 out of top 10 outsourcing cities are in India.
India is the most preferred destination for IT outsourcing and BPO.
Indonesia and China come second and third respectively in Asian region.
China is famous for its cheap manufacturing services.
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7. CHOOSING THE RIGHT PARTNER
Identify and validate claims made by them.
Check their social footprint.
Make sure they have sufficient past experience with the relevant projects.
Ask for recommendations and testimonials.
Analyze their communication skills and make sure their style meets your company
culture/goals.
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8. SOME INTERESTING STATISTICS
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Source - http://raconteur.net/infographics/state-of-
business-outsourcing

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