Thursday, February 19, 2009

outsourcing is good????

How can you determine if outsourcing is advantageous to your organization? Would you recommend outsourcing to USEP?


32 Benefits of Outsourcing according to MDF Systems

1. Reduce overheads, free up resources
2. Minimize capital expenditure
3. Eliminate investment in fixed infrastructure
4. Offload non-core functions
5. Redirect energy and personnel into the core business
6. Free your executive team from day-to-day process problems
7. Focus scarce resources on mission-critical projects
8. Get access to specialized skills
9. Reduce need for internal commitment of specialists
10. Save on manpower and training costs
11. Control operating costs
12. Improve efficiencies through economies of scale
13. Improve speed and service
14. Level out cyclical or seasonal fluctuations
15. Eliminate peak staffing problems
16. Provide the best quality services, products and people
17. Be reliable and innovative
18. Provide value-added services
19. Increase customer satisfaction
20. Establish long-term, strategic relationships with world-class service providers to gain a competitive edge
21. Enhance tactical and strategic advantages
22. Focus on strategic thinking, process reengineering and managing trading partner relationships
23. Benefit from the provider's expertise in solving problems for a variety of clients with similar requirements.
24. Obtain needed project management and implementation consulting expertise
25. Acquire access to best practices and proven methodologies
26. Spread your risks
27. Avoid the cost of chasing technology
28. Leverage the provider's extensive investments in technology, methodologies and people
29. Reduce the risk of technological obsolescence
30. Increase efficiency by consolidating and centralizing functions
31. Keep pace and minimize the impact of rapid changes in technology without changing your infrastructure
32. Reduce the overall management burden while retaining control of strategic decision making.

Outsourcing is advantageous to a company if the company can afford to outsource. If the company or organization will not turn out to lay-off their personnel just to outsource.
For me in USEP they must outsource since they have a big budget and by outsourcing our professors in Institute of Computing will not be hired to create a system and they will only focus in teaching. Since they apply in the university as a instructor not just a programmer. Though they have the skills but it is more likely to share those skills to the student rather than making a enrollment system in the university.

What is Outsourcing?, wiseGEEK retrieved from http://www.wisegeek.com/what-is-outsourcing.htm

The Benefits of Outsourcing for Small Businesses, All Business A D&B Company retrieved from http://www.allbusiness.com/human-resources/workforce-management-hiring/1084-3.html

Tips and Trivia, mdfsystem retrieved from http://www.mdfsystems.com/artman/publish/article_19.shtml