When to consider e-outsourcing over conventional

January 20, 2012: Electronic outsourcing other wise know as e-outsourcing is the set of activities that are offered electronically to the clients. These services are delivered over the internet. The service offered through e-outsourcing varies from conventional business functions which consist of book keeping, to technical and Information Technology services, such as web hosting.

There are many benefits that are offered by e-outsourcing. The organization before going for e-outsourcing should look into both the pros and cons, and should make a decision based on the need of the organization. The first one is the cost reduction. In the case of e-outsourcing, the client needs to pay only when the service is used. This reduces the spending on new equipment, staff or training.

E-outsourcing helps the organizations to achieve increased efficiency. The organizations no longer need a complex IT network of separate IT department.

It offers commercial advantage too.  The organizations can work in close cooperation with the business partners and customers. E-outsourcing makes it possible for the employees to work remotely and gain entry to high performing software at reasonable rates.

Before going for an e-outsourcing solution, the organization needs to carefully consider certain factors that help in understanding whether to avail e-outsourcing services. The management of the organization has to research to determine whether e-outsourcing makes sense to the business. The management should consider whether it will help in gaining access to new markets or technologies. Another important point to be researched is whether the competitors outsource any of their business processes.

Before adopting e-outsourcing the organization should identify the advantages associated with it. The organization should find out whether it will save time and money, enhance the e-commerce capabilities or offer competitive advantage.

The cost factor should also be considered. A cost benefit analysis should be carried out to determine the cost and the time required to earn profit. The service providers should also be assessed and be short listed based on cost, deliverables and other relevant factors.

Even though e-outsourcing offers low cost services, the organizations should make sure that the data remains secure and protected. Also the organization should consider the impact of e-outsourcing on other areas of business and the processes that requires modification.

The organization should draw out an implementation schedule. The organization can even operate the conventional system along with e-outsourcing till it proves to be of advantage to the organization. Also perform regular review to make sure that e-outsourcing delivers what is promised.

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