1. On–Demand IT Outsourcing
To streamline your business requirements
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2. IT Outsourcing
IT outsourcing is the process of sub-contracting or "farming out" certain information technology
functions to independent, third-party companies or individuals, rather than keeping those functions
in-house.
Outsourcing is one of the most cost-effective way for companies to hire qualified human resources
for specific IT jobs without having to commit to the significant costs of maintaining a year-round in-
house team. This works well for both parties. Qualified programmers, code generators, system
administrators and other IT experts enjoy the flexibility of working on the projects they prefer, while
companies relish scalability in their personnel. Instead of spending big amount of money on
unneeded infrastructure, companies can focus on what they do best, and leave the IT work to the
professionals.
On–Demand IT Outsourcing
On-demand outsourcing is a new trend in outsourcing wherein internal processes of a company are
being shifted to a provider that is paid for by the number of transactions involved, on their current
requirement basis.
Requirement based outsourcing has the potentiality to resource companies meet today's IT goals: a
direct & measurable link to business goals; the ability to change rapidly; and increased flexibility in
staffing.
On-Demand Model
In today's extremely competitive state of business environment, forward-looking organizations are
evolving towards a business model that is:
• Responsive: Capable of sensing change and responding impulsively to uncertain fluctuations
in supply or demand, market turns, emerging needs or unpredicted competitive moves
• Variable: Capable of adapting cost structures and business processes, which aims to reduce
risk, pace up performance and achieve high productivity, financial predictability and capital
stability
• Focused: Bound up to focus on core competencies and USP that differentiate the organization
from others
• Resilient: A robust, scalable, accessible and security-rich process system get streamlined
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3. Why Outsourcing On-Demand?
All size service providing companies can experience periodic peaks and troughs in their demand
workload that they can’t expend to staff up for on an on-going basis. In the above scenario, Service
Providers may shift for outsourcing some of this work on a transactional (On-Demand) basis.
There are many reasons why a company may opt to outsource a specific function of their business.
Most managers have the end-result in mind that they are going to save time and/or money. Other
reasons include:
1. Resource Insufficiency Alleviated by Outsourcing
A particularly strong reason to outsource on-demand involves a shortage of a critical resource.
This can be available employees that possess knowledge in a certain area (e.g. engineers),
availability of material (e.g. Technology, infratstructure) and a labor force at a level and price
that will offset the cost of higher prices alternatives.
2. Outsourcing Caters the capability to Concentrate On the Core Business
This yields the managers with the capability to concentrate on the core business issues rather
than of getting distracted by needed, yet less significant concerns.
3. Outsourcing Returns Cost Savings
The prices of skilled IT personnel and/or technologies keep increasing and competition keeps
forcing prices lower. If there is an outsourcing solution that can save your company money
and overcomes the disadvantages of outsourcing, these areas should be investigated.
4. Outsourcing Provides Flexibility
Periodic demands put fluctuating & varying demands on the resources of the company. An on
demand outsourcing agreement may provide the flexibility needed to stabilize these varying
demands.
5. Reduce Overhead Costs Through Outsourcing
Some functions require a large spending of money just to get started. This expending could be
avoided by contracting with a third party for that limited period of time.
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4. Top Reasons for Outsourcing
Improve Quality 13%
Focus on Core 36% Increase Speed to Market 10%
Foster Innovation 4%
Conserve Capital 1%
Reduce Costs 36%
Companies those who are looking to keep their organization ahead of competition, concentrate on
core competencies, and implement the latest technologies, then outsourcing is a good option for
them. The advantages of outsourcing have driven more organization to step into offshore
outsourcing and experience the benefits that it has to offer.
Benefits of On-Demand Outsourcing
In addition to the outsourcing benefits listed above, on-demand outsourcing offers the following
advantages:
1. Ability to quickly maximize ROI and profit margin while securing long-term competitive
advantages fot the client
2. Provisioning costs can be slashed up to 30-40 percent
3. Ability to efficiently handle non-linear and unpredictable monthly order volumes
4. Transactional pricing plans eliminate costs associated with idle capacity
5. Quick end customer turn-ups improve satisfaction ratings and speed cash flow
6. Elimination of rework costs and other inefficiencies
7. Reduced order overheads improves revenues, collections, and customer satisfaction
8. Quick time to market for new product launches, network upgrades, and migration projects.
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5. Higher Cost Savings with Outsourcing (in %)
27
30
Average Cost Savings
25 20
20
16
13
15
10
5
0
Infrastructure App. development App. support Help desk
On-demand order engineering makes sense where order volumes range from 0 to 500 orders a
month. In this area, On-Demand order management can bring a cost savings of up to 50 percent per
order over the in-house approach. With its transactional cost model, on-demand can generate
significant savings while improving quality, customer satisfaction and cycle times.
Outsourced IT Services
Almost all IT services can be outsourced on demand basis, such as:
• Software Consulting
• Software Programming
• Email Server
• eCommerce Development
• Website Design and Maintenance
• Application Hosting/Maintenance
• Network/Infrastructure Maintenance
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6. On-Demand IT Outsourcing service Providers
A variety of vendors both big and small provide access to these freelance IT professionals. Choosing
the right provider is as much about the size of a given company and its particular technical needs as
it is about the size of the provider.
A small firm of ten to twenty people that is launching a new website, for example, will easily be able
to satisfy its IT Outsourcing needs with a smaller firm, which hosts a list of qualified professionals
that bid independently by project. For a company of over 100 people, a larger firm may be able to
offer a more cohesive strategy for a larger project, but if the project is still at a relatively small scale, a
smaller site may be able to provide all the necessary help.
India is a hub of cost effective IT outsourcing service providers. With over a decade of experience in
the industry, many service providers has established itself as a trusted partner to various companies
by providing timely project delivery coupled with high quality.
Conclusion
On-Demand outsourcing for IT functions is an increasingly popular way to reduce the cost and
improve basic services while allowing companies to focus on their core business.
On-Demand IT outsourcing is particularly suited for companies which are in the midst of launching
a campaign, product, or new merger or acquisition and need an immense amount of technical help
in a short period of time.
Similarly, companies that have an older network or have not performed extensive maintenance in the
last few years benefit from being able to simply hire the job done. There’s no need for a year-round
technician when a team of enthusiastic freelancers can perform all necessary updates and installs
within a few days.
The only downside to IT outsourcing is the lack of personal connectivity and long-term investment.
Companies that want to foster a ‘family’ atmosphere should invest in hiring an in-house team.
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7. About Clarion Technologies:
Clarion Technologies is a leading Technology, Outsourcing solutions provider based out of India.
Clarion partners with its clients with a single-point agenda - to transform their business challenges
into growth opportunities! Clarion has mobilized the right people, skills, technology, and processes
to help clients strengthen their competitive advantage.
With services spanning the technology value chain, Clarion is a one stop shop for enterprise wide IT
needs. Our singular focus on ‘client satisfaction’ cements our relationship with our clients. As a
matter of fact more than 90% of our customer base has repeatedly partnered with Clarion to
continuously build technical solutions for almost a decade.
For more information on partnering with Clarion Technologies, contact us at
info@clariontechnologies.co.in or visit our website at: www.clariontechnologies.co.in
Clarion Technologies