What Is Outsourcing?

What is Outsourcing?

Outsourcing is essentially letting out certain activities integral to running an organization or business that does not constitute core activities. Activities such as building maintenance, administrative support, website development and maintenance, credit collection, data entry and maintenance are some areas that are often outsourced. Likewise Zatun is a single window solution for all game art outsourcing assignments. So there will be no more question like What is Outsourcing?

All these activities involve resources in way of space, manpower, and energy which add to the costs of a company. Consequently costs go up without giving sufficient returns. When jobs are outsourced a company is relieved of not only paying salaries but also perquisites in ways of social benefits, bonus, and retirement benefits. Further there is a cost involved in training new incumbents on every joining. In a market situation where competition exists on knife edges, it is essential to keep costs as low as possible. Cost cutting and deployment of specialized resources are the basic factors contributing to outsourcing of tasks.

The commonest forms of outsourcing as existent presently are BPO (business process outsourcing) and ITO (information technology outsourcing). Business processes include call centre services, payment follow up and collections, and claims processing. In ITO the activities covered include creation and maintenance of websites, online marketing, data storage, management and recovery, content management, and web traffic generation.

Advantages of Outsourcing

Among the many advantages of outsourcing some of the remarkable ones are:

  • Using the best available resources for a specific job;
  • Cutting overhead costs significantly and divert the money thus saved for more productive purposes;
  • Concentrating more on core business areas that ultimately lead to growth and development;
  • Paying only for services provided and nothing additional;
  • Having an access to resources from all over the world;
  • Conserving time, resources, and money for worthwhile use

These are the main benefits of outsourcing based on which other advantages add on. Companies have realized that to survive a cut-throat market environment it is imperative to reduce unnecessary costs and invest resources in a more productive manner.

Onshore Outsourcing

Outsourcing allows the engagement of agencies or organizations from anywhere in the world. Third world countries are flourishing territories for outsource business companies as manpower is professionally qualified and cheap as compared to developed countries in Europe or America.

When outsourcing job is given to a concern within the same geographical territory it is termed ‘onshore outsourcing’. Many organizations prefer onshore outsourcing since it is easier to make follow ups and concerned organizations are guided by the same set of rules of land and government.

Offshore Outsourcing Services

When a job is outsourced to an organization outside the geographical territory of one’s own country then it is termed ‘offshore outsourcing’. Offshore outsourcing services give total flexibility in appointing the best available resources at most affordable rates. Developing countries in Asia such as India and China are examples of countries which thrive in companies offering outsourced services. Very recently, East European countries are joining this list.
What is Outsourcing? When ever this question knocks your head than the answer will be Zatun. Zatun is an Indian outsourcing company engaged in developing games for desktops and hand held devices including iPhones. Facebook games and hidden object games are also developed by Zatun.

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