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On Demand IT Outsourcing


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On Demand IT Outsourcing

  1. 1. On–Demand IT OutsourcingTo streamline your business requirements Pune | Ahmedabad | Bengaluru | Rhode Island(US) Clarion Technologies
  2. 2. IT OutsourcingIT outsourcing is the process of sub-contracting or "farming out" certain information technologyfunctions to independent, third-party companies or individuals, rather than keeping those functionsin-house.Outsourcing is one of the most cost-effective way for companies to hire qualified human resourcesfor 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, systemadministrators and other IT experts enjoy the flexibility of working on the projects they prefer, whilecompanies relish scalability in their personnel. Instead of spending big amount of money onunneeded infrastructure, companies can focus on what they do best, and leave the IT work to theprofessionals.On–Demand IT OutsourcingOn-demand outsourcing is a new trend in outsourcing wherein internal processes of a company arebeing shifted to a provider that is paid for by the number of transactions involved, on their currentrequirement basis.Requirement based outsourcing has the potentiality to resource companies meet todays IT goals: adirect & measurable link to business goals; the ability to change rapidly; and increased flexibility instaffing.On-Demand ModelIn todays extremely competitive state of business environment, forward-looking organizations areevolving 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 Clarion Technologies
  3. 3. Why Outsourcing On-Demand?All size service providing companies can experience periodic peaks and troughs in their demandworkload that they can’t expend to staff up for on an on-going basis. In the above scenario, ServiceProviders 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. Otherreasons 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. Clarion Technologies
  4. 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 oncore competencies, and implement the latest technologies, then outsourcing is a good option forthem. The advantages of outsourcing have driven more organization to step into offshoreoutsourcing and experience the benefits that it has to offer.Benefits of On-Demand OutsourcingIn addition to the outsourcing benefits listed above, on-demand outsourcing offers the followingadvantages: 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. Clarion Technologies
  5. 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 deskOn-demand order engineering makes sense where order volumes range from 0 to 500 orders amonth. In this area, On-Demand order management can bring a cost savings of up to 50 percent perorder over the in-house approach. With its transactional cost model, on-demand can generatesignificant savings while improving quality, customer satisfaction and cycle times.Outsourced IT ServicesAlmost 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 Clarion Technologies
  6. 6. On-Demand IT Outsourcing service ProvidersA variety of vendors both big and small provide access to these freelance IT professionals. Choosingthe right provider is as much about the size of a given company and its particular technical needs asit 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 ableto satisfy its IT Outsourcing needs with a smaller firm, which hosts a list of qualified professionalsthat bid independently by project. For a company of over 100 people, a larger firm may be able tooffer a more cohesive strategy for a larger project, but if the project is still at a relatively small scale, asmaller 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 inthe industry, many service providers has established itself as a trusted partner to various companiesby providing timely project delivery coupled with high quality.ConclusionOn-Demand outsourcing for IT functions is an increasingly popular way to reduce the cost andimprove 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 launchinga campaign, product, or new merger or acquisition and need an immense amount of technical helpin a short period of time.Similarly, companies that have an older network or have not performed extensive maintenance in thelast few years benefit from being able to simply hire the job done. There’s no need for a year-roundtechnician when a team of enthusiastic freelancers can perform all necessary updates and installswithin 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. Clarion Technologies
  7. 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 challengesinto growth opportunities! Clarion has mobilized the right people, skills, technology, and processesto help clients strengthen their competitive advantage.With services spanning the technology value chain, Clarion is a one stop shop for enterprise wide ITneeds. Our singular focus on ‘client satisfaction’ cements our relationship with our clients. As amatter of fact more than 90% of our customer base has repeatedly partnered with Clarion tocontinuously build technical solutions for almost a decade.For more information on partnering with Clarion Technologies, contact us or visit our website at: Clarion Technologies