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Will Donald Trump End Outsourcing In 2017?
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Valentine’s Day: Why Choosing Your Outsourcing Partner Is Just Like a Date?
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This is How You Can Reduce Cost through Outsourcing
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How Outsourcing Will Help Your Business To Grow Faster

Will Donald Trump End Outsourcing In 2017?

With Donald Trump finally making it to Presidency, there has been a lot of turmoil and panic in countries such as India and China with the threat of ending outsourcing to these countries. At first glance, it seems quite impossible since all major American corporations have utilized this resource as a long-standing practice, outsourcing their manufacturing to  China (notably tech firms such as Apple and Hewlett-Packard) or customer service/data management jobs to India. For years, outsourcing has been the norm in the world of American corporates and now, it appears that President Trump is threatening to bring it all down. He has already started working on doing a complete overhaul of the H-1b visa system, which has left the fate of hundreds of Silicon Valley workers hanging in the balance. Among the widespread panic that it has caused, aspersions are being cast regarding the steps that would be taken with regards to putting a stop to outsourcing.

A lot of company spokespersons are trying to assuage fears by stating that it would be next to impossible because manufacturing goods in the United States would mean a hike in the cost of production (owing to monumental labor costs), and thus cutting down on worldwide profits significantly. According to Andrew Rassweiler, Director of Materials and Cost Benchmarking at IHS Technology, products like an iPhone (Apple is one of the most prominent firms to engage in outsourcing) would cost around $2000 if all its components were to be individually manufactured in the US. That, needless to say, is far beyond what most people would be able to afford. Apart from the production losses that Apple would incur, it would also lose a lot of the political goodwill it enjoys from its consumer base worldwide.

From this alone, it is clear that it would be next to impossible to put a total stop to outsourcing (or to describe the term more precisely, offshoring). However, it is definitely possible to resort to protectionism. Tariffs and import duties can easily be imposed upon Chinese-made mobiles or automobiles made in Mexico  (Ford, to be precise).  That would set the US back 100 years as far as economic development is concerned; setting aside the fact that it could likely create trade wars with countries like China. This action could create political instability worldwide. the process has already kick-started with the US, under Trump, withdrawing from the landmark Trans-Pacific Partnership that had been inked between a host of countries with the aim to lower tariff and nontariff trade barriers. On the domestic front, too, the scenario would not be too cheerful with widespread unrest owing to a 30% dip in consumer spending on electronic and other goods of daily use.

Plus, here’s another point: The “rust belt” of the United States (i.e. states such as New York, Pennsylvania, Ohio, Indiana, Michigan and Illinois) were the primary swing states (a few of the aforementioned ones) that voted in favor of Trump. So, it’s not surprising that his administration would rush to fulfill its promise. However, this isn’t the fifties when the bulk of the American middle class were working in the manufacturing industry as a primary livelihood. Ever since the base of manufacturing shifted to China, rust belt workers have had to find alternate ways of living.There is a portion of this society who sustain their livelihood through assistance programs such as food stamps and others have joined the service industry. It’s an unfortunate fact that workers who do not have a college education/degree aren’t in great demand any longer in the United States. With technical degrees not as highly sought after by current American college students, there is the question as to who would be able to fill the ranks of the new (technical) jobs created by automation in various fields. The only option that companies may have is to either hire from abroad and pay relocation expenses for these skilled workers  (and let’s not forget that H-1b visa is already in the eye of the storm), or simply remain to outsource them to IT hubs abroad. Forcing these companies to get back to the pre-automation period and rely on unskilled laborers is simply not possible anymore. Manufacturing is all but dead in the USA; there’s simply no demand for home-grown workers in this field anymore. Reversing this is not just difficult, but simply impossible.

What the future holds remains to be seen, but with very real and practical concerns that surround the thorny issue of outsourcing. Considering all the facts, there’s little chance it will be stopped soon. Already a lot of foreign Silicon Valley professionals are boarding flights back to their home countries because of the new measures were taken regarding the H-1b. If outsourcing is targeted next, Trump will surely risk his credibility and respect as a president, and may possibly even have to contend with the threat of being impeached due to corporate lobbies alone in Congress who may push for his removal.

Valentine’s Day: Why Choosing Your Outsourcing Partner Is Just Like a Date?

Valentine’s Day is just around the corner and it is easy to feel the love in the air. Business operations are nothing less than love as both are complex and need your attention. Needless to say, both business and love are rewarding. You can express your love for your business by choosing the right outsourcing partner. Outsourcing allows you to get the benefits of skilled professionals without even the hassles of hiring them. As love fills you with content, outsourcing also does the same by providing high-quality work at reduced cost resulting in increased profits. Choosing your outsourcing partner can be just as confusing as planning a date for your Valentine. Here are some similarities between the two and some tips to select your outsourcing partner.

A Match Made in Heaven

Just like choosing a life partner, choosing a partner for business operations should also be a match made in heaven. When you are choosing an outsourcing company, you must make sure that the company is a fit for the needs of your company. They should offer the exact set of services that your business needs, neither more nor less. This is to ensure that you are getting the best value for your money. For example, if you only want SEO service, you should not be forced to pay for other services that you don’t need but must take as there is no other option. This also means that the SEO service that you choose should be complete and beneficial for you.

You Complete My World

The outsourcing partner you select should be the answer to all your requirements. An outsourcing company must provide you quality work that helps your business to grow. The company you choose should be reliable and genuine. A company that has been around for a longer period of time and has experience in handling projects is a better choice than one that has just been established. An experienced team is also an important deciding factor.  You should research the company to verify whether they have been consistent with their quality and meeting deadlines.

I Can Always Count on You

If you can count on your outsourcing partner and you know that your partner is always there to watch your back, life is a little easier. An essential reason to have an outsourcing company that understands your business and risks involved and helps in the growth of your business.  Apart from maintaining quality and delivering output on time, your outsource partner should also be ready to handle any sort of emergency situations. If you choose the right outsourcing company, you will know what they are capable of.  Make certain you choose a company that has highly qualified and experienced professionals who know their job.

Many outsourcing companies do not have a transparent payment structure. A good outsourcing company lets you know their work procedures and rate structure. This ensures you are not paying extra money in the form of hidden costs or useless jobs.

No One Understand Me Like You Do

A good outsourcing company maintains a great level of communication.  The team members that handle your project must interact with you throughout the procedure. This helps you to keep track of how your work is being done, who is doing the work and how much work is left. It also facilitates better delegation of responsibilities and sets up a level of accountability for those working on the project.  

A reliable outsourcing company gives you advice on the amount of work your business might need and answer all your queries. A well-established outsourcing company has staff that can communicate well in English.

You Treat Me Like I Am the Only One in the World

Last, but not least, your outsourcing partner should value the needs of your business as client satisfaction should be their prime objective.  A good outsourcing service provider customizes their services to meet the needs of the client. They support the client from the order to the finish and even beyond that.

These are all points that you consider while choosing an outsourcing partner. A good partner is beneficial for your business and this relationship is the perfection that will last forever.

This is How You Can Reduce Cost through Outsourcing

Outsource to Reduce Your Spending

Outsource to Reduce Your Spending

Outsourcing gives the most competitive advantage to a business by reducing cost. While choosing an outsourcing partner, although quality remains a top priority, but low cost is often considered of high importance.

Companies outsource when they are expanding team r have acquired a project for which they do not have the right skills in house. For a small or mid level company partnering up with a company that demand high price becomes unaffordable. Thus, the demand for companies that offer remote hiring services at low cost grew. India remains one of the top preferred outsourcing destinations of the world owing to its high quality work at low cost. It captured the world market and is remains as the largest outsourcing destination.

In the time of economic slowdown cost stands as the major factor for outsourcing. While comparing the spending between hiring full time employees and outsourcing, the later wins hands on by reducing direct cost.

Immediate benefits
Outsourcing gives the flexibility to choose the number of resources you need for a specific time as per your requirements. There is no upfront cost thus helping you to save money. You don’t need to invest on infrastructure and save solid on financial basis. Further, skilled human resources bring in great advantages the top being the knowledge that they add to your team.

Medium-term benefits
Consider you have earned a great project that involves a lot of complexities and requires a long time to complete. You may hire full time developers and only pay for the amount of hours they work. At any point of time you have the flexibility to add new members to the team or reduce your team size as per your work flow.

Long-term benefits
While there are immediate benefits of outsourcing, you should also consider its long term benefits – and that’s, if not anything else, more. Considering the progress plan of your business, it is ideal to partner up with a service provider who you have worked with before. You find it easy to communicate to with the team. Since you have worked with them before, you already know the team’s strengths and weaknesses and exactly know to put which member where. Moreover, you have complete transparency of their working procedure which saves you a lot of time hence money.

Invisible Benefits
By outsourcing your part of work for which you do not have in-house skills, you bring in fresh knowledge and skills from your partner company. You do not have to spend time over screening candidates as your partner company has already done the job for you. You also do not have to worry about deadline of your project and you have all the time to concentrate on growing your business.

How Outsourcing Will Help Your Business To Grow Faster

Your business will grow faster only when you divide your time between your core business activities and your non-core business functions with diligence. Today, outsourcing is one of the most sought after options and a top business trend for small and large businesses alike. Over the past decade, the growing amount of outsourcing work have made it a tried-and-tested model and is widely accepted as a long term strategy for success. If you are asking yourself the following questions then its time for you to outsource a part of your work:

  • Are we able to keep our spending low?
  • Do we have the right resources to work on cutting edge technologies?
  • Do I have the budget to hire the right resources for a new project?
  • Is there a more agile, more effective method to handle processes?
  • Does our company have the right player with operational expertise to do a task assigned?

Why outsourcing is essential for your business growth? A study on few companies sites the following reasons for outsourcing work:

Controlling Operational Costs
Hire the right resources for your company at competitive cost from countries like India. The processes you outsource will be delivered at a much lower cost than hiring resources from US. This will help you to do major cost savings for your business. You further end up saving your revenues on operations like administration, HR, payroll and overall employee overhead cost.

Lower Investment on Infrastructure
No investment on new infrastructure as you are not hiring any resources at your office location. There is a drastic cost cutting on expensive infrastructural requisites like laptops or desktops, licensed software, work desks, internet connections, IT systems, office rent, electricity and so on. These can turn out to be huge investments to companies when the team grows.

More Focus to Your Core Business Functions
By outsourcing parts of your project process, you can put more focus on your core business and use your internal resources for more critical activities of the organization. By outsourcing your work such as converting a PSD file to HTML, designing and developing your ecommerce portal, developing a mobile app for your business or developing a web application using drupal, php, NodeJS and so on, you can focus on more important things like sales.

Get Work Done Using New Technology
You have a project that demands to be completed using new technologies and none in your organization have the know-how of it. Outsource it to a company who has the efficiency to handle the project successfully. The project will be of higher quality, completed in lesser time and at a lower cost.

Avoid Downturn of Work During Holiday Seasons
You have a project to deliver and half of your employees are on a leave during the holiday season. You might have faced this many times. By outsourcing your work to a remote hiring company you can avoid such disasters. There will be no seasonal fluctuation of work and your projects will be dealt with full commitment.

No More Talent Shortage
Outsourcing work to a remote hiring company brings an end to the talent shortage that you may be facing. Currently countries like UK and US are are going through an increased demand for right skills. Hence hiring skilled professionals on contractual basis from countries like India can reduce your problem to a large extent.

Today most organizations are outsourcing their overflow of work to companies that offer remote hiring services. Time and again outsourcing has been proven as the most effective way to reduce operational cost and get higher quality work. Further you get an access to work with highly qualified and experienced professionals.

Now that we discussed the advantages of outsourcing, we will talk about the difference between hiring a freelancer and partnering up with a company that offer “Managed Outsourcing Services” in the 2nd part of this post.

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