The world is shrinking to a workspace. With globalization and increased telecommunication many companies have preferred to outsource their work to some specialized 3rd party vendor. Some key thoughts that must be kept in mind to help you decide whether to outsource: 1. Cost: The cost of labor can be reduced to a great extend, thus reducing the total cost. It adds to your advantage that there is always a provision to choose from fixed cost or pay as you use them. The net cost need to be always kept in mind, and should keep a continuous communication with the vendor you hire so that you can manage the speed and direction of work. There is maybe also difficulty in managing an offshore business which is not in your country. 2. Talent pool: The 3rd party vendors have experience and talent in areas alike. Rather than hiring a set of employees for a short time (till the deployment of a project) it is better to look for resources that have experience in taking such assignments. They are easily affordable compared to in-house talents. But, it is very crucial to select the right vendor, as there are thousands of companies out there. The quality of the end-product should not be compromised with the other benefits like cost. The competition among these vendors will help them to raise their standard and deliver quality products as it affects their future market. 3. Time Frame: As these vendors are experts in building application in a particular technology, they will be able to deliver product in a short time frame. But again, it is with the company to be affirmative and choose right vendors. It is best to get a proposed delivery date for end-product, which will maximize your profit because as the time frame increases the profit also decreases. You should enquire about hidden charges and should devote quality time in studying and signing a contract with the company. 4. Mitigate risk: You will able to focus on core-industry activities and pay less attention to other activities related to it. Thus risk can be mitigated to another company who handles that part of work completely, of course under your supervision. It is important that the vendor captures the business environment correctly otherwise it can lead to business solutions which will not add value to your company. Cabot understands these risk factors and provides the best practices to mitigate them. To facilitate this we use a Project Collaboration system to manage time and resource usage, record and track defects, enable file sharing and easy communication via discussion boards of all your projects. As a client you will be provided access to view, participate and share actively in the day to day functions of your project. We are flexible to our client’s needs and offer different engagement models that suit our client’s need of the hour. At Cabot Solutions, we aim at enhancing our Client’s business and providing them with solutions to grow their business and not just providing our Clients with the product or service they are looking to build currently. Thus, by careful selection to vendors you can reduce the risk factors associated with outsourcing to a great extend. Reference: http://www.businessweek.com
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