Outsourcing

Benefits of outsourcing
Outsourcing has grown to be a hype since the past several years. Practically any nation and virtually every company is outsourcing a portion of its assignments or some responsibilities. The actual motive that has been recently identified for the raise in the pattern of outsourcing regarding businesses is it heightens profit and lower costs, and business concentrates most on these factors. For illustration if we think about the illustration of IBM, which usually in the year 2003, determined to outsource the tasks of nearly 5000 developers to India and China. In the same way, Microsoft, Dell, American Express, and basically every key multinational right from Accenture to Yahoo has currently outsourced job or is having actions to do so. Through the reports of the outsourcing of these organizations it is discovered that the cost savings due to outsourcing tend to be impressive as businesses can decrease around 20% to 70% of their own labor costs by outsourcing work to low-wage countries thinking about that the job is of same level of quality.

The principle of outsourcing had been followed by diverse businesses in different approaches such as in quite a few cases the organizations who wanted to outsource their customer support:
1.Employed techie authors in order to write refined usage directions of their products
2.Catalog the key factors of data
3.Developed with short-term career agencies to seek out for, teach and employ usually low-skilled workers to response their phone technical help and customer service calls

The most vast spread method of outsourcing getting followed all over the world is of call centers. The individuals appointed at the call centers responded to the request calls of the users, where the details required to support the phoning user was listed in a computer program. In most instances the providers were not responsible to tell the users that they were not immediately linked with the authentic producer.
Today the area of outsourcing has become a playground for all type of businesses. By KPO (Knowledge processing outsourcing) virtually every field from services sector to manufacturing and import export outsourcing is a preferred destination.

India Advantage for outsourcing
Outsourcing is not a freshly launched strategy. It is an age-old principle propagated by Mr. Adam Smith, who is considered as the father of economics. This principle is common to everybody, beginning from an individual to households and nations. Recognition of such financial thought by multinational companies led to the stupendous expansion of outsourcing. Over the years, the meaning of the term ‘outsourcing’ has developed to contain more and more activities. From obtaining of raw materials to finished goods, the manufacturing activities have been shifting to low cost locations ever since the industrial revolution. Today, outsourcing is included with more range of activities with the help of information and communication technology. It began with outsourcing of business processes and now added with high-end knowledge processes. The quantity of outsourcing is also growing along with the range of activities. This is mainly because in a demanding environment, firms are compelled to reduce costs and focus on core activities. The outsourcing process is advantageous to the service providers / countries also, as they get technical know-how and skill advancement that help them to mature and prosper in building core abilities.

Off-shoring of engineering process
Expansion in off-shoring of engineering processes, an off-shoot of R&D operations off-shoring, is primarily credited to aspects such as labor cost arbitrage, lowered product life cycle, non-availability of technology, or scale operations. Although all other elements are either country specific or firm specific, decrease in product life cycle is particular to the merchandise. Be they electronics, telecom, and automobiles or aerospace, segments in which engineering applications are prominent, products are going off-shelf paving way for newer products with latest technology. With such decrease in product life cycle, innovation becomes the key to success with greater focus on product improvement and design activities.

There are a number of key benefits, which India has in its fold. These include:
Institutional expertise: In India, public sector firms, defense research institutions, and private companies continue to be in the forefront of engineering design and innovation. Connections with such organizations, have helped the Indian engineering industry to create significant amount of sector knowledge to serve the global clients producing inroads into sourcing of engineering services from India.

Skill advantage: An additional major factor for growth in off-shoring of higher-end engineering and design services to India is availability of engineering talent. It is estimated that over 300,000 engineering students are graduating from India every year from about 1500 colleges.

Low-cost advantage: Typical beginning annual salary of Indian engineers are estimated to be one-tenth of regular salary prevailing for engineers in developed countries such as USA. There are estimates that India offers overall cost reduction of 25% in EPO. The cost differences are estimated to be higher in some of the knowledge-oriented sectors. In addition, the quality of engineers in India is also relatively high when compared to many developed and developing countries.
Track record: India also retains significant experience and knowledge in handling outsourcing opportunities in business-processing and technology-processing segments. India’s benefit in these segments lies in its reputation and ability to deliver technology services on-time to global majors. This benefit expected to work in favor of India and help enhance the confidence level of clients abroad.

Outsourcing Checklist
WHAT TO SEARCH FOR IN SERVICE PROVIDERS
Not all service providers are identical. Some essential conditions to seek include:
• Suitable outsourcing experience and verified customer satisfaction
• Good formal best practice processes
• Standard design and execution methodology
• Sufficient numbers of competently skilled resources
• Industry leading technologies that are incorporated into their functions
• Sound financial performance and support
• Scale and geography to complement your organization’s needs
• Readiness to be versatile locally without dropping standards
• Proper frameworks for service level administration
• Cultural fit as widely differing cultures will lead to confrontation
• Commitment to continual improvement in their business
• Powerful transition experience and human resource transition skills
• Clear vision of its role in profiting your business
• The appropriate motivation to improve your business.
The last criterion is important. You must understand why the outsourcer wants your business and what their goal is for the outsourcing program.

Outsourcing checklist
Many of the subsequent questions are as relevant to established agreements as they are to a novice starting a first time outsourcing project:
• Do you know your real reasons for outsourcing?
• Have you established the most appropriate transition to outsourcing for your business
• Are your motives for outsourcing backed by matching goals and objectives and are these goals and objectives practical?
• Have you hired a properly qualified team to undertake the process, together with if necessary auditors, accountants, lawyers and project managers?
• Do you know the full extent of your IT assets, including licenses, people and equipment?
• Have you acquired measures of current performance of all affected assets, people and processes?
• Does your RFP clearly reveal your goals and objectives for outsourcing and will you be able to gauge how well bidders comply with those needs?
• Have you asked the bidders how they will accomplish the targets you set for outsourcing?
• Have you thought of how you will manage the outsourcing contract and relationship over time?
• Have you fully developed a risk management plan for the outsourcing agreement from beginning to end of contract for whatever reason?

Tips to Hire CAD Drawing Services
CAD drawing is one of the top services provided by CAD outsourcing companies in India. Be it the conversion of paper drawings to CAD or the conversion of file formats such as jpeg, tiff, and bmp, you can rest assured about the quality of service you can expect from a professional CAD drawing service provider.

Different types of drawing conversions
Architectural and engineering designs are often created by hand in the form of sketches and scribbles. It is the responsibility of the CAD expert to convert them as well as scanned documents to CAD format. Engineers and architects also sometimes require the conversion of blueprints, velum, and photographs to CAD drawings.

The importance of accuracy and precision
CAD drawing experts working with architectural and engineering professionals are adept in handling the conversion of raster images to CAD, which might also include redrafting as well. When hiring outsourcing experts for CAD drawing requirements, check whether they ensure accuracy in every work that they provide. CAD drafting is a high precision job because often the success or failure of such professionals or services depends upon the accuracy of drawings delivered.

Things to check before outsourcing CAD drawing services
You should expect the CAD drawing professional that you hire to use exaggerated dimensioning styles, standard cell libraries, and fonts. If a CAD outsourcing firm is not able to provide uniform layout for all types of drawings, then it should be a warning sign before hiring them. A CAD drawing professional needs to control all kinds of entities carefully. If the drawing output does not exceed your expectations, think again before hiring the company for CAD outsourcing.