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Outsourcing isn't all Math about cutting down the costs. It's rather a strategic solution. Oh my, have you heard 'Tea & Biscuit' story of Apple?

Companies pass through a number of phases during their lifetime. First is the testing of waters, where the market validates the basic idea behind the service or the product. You build a core team and move fast to acquire new users or customers and start adding up features.

After you are established on your feet and have gained market share you will move to the next stage of scaling up and consolidation. That's where companies start considering outsoursing as an option. Have you heard Apple's TEA & BISCUITS story?

'In 2007, Steve Jobs decided that he wanted a Glass Screen for iPhones, just a few weeks before their launch date. All suppliers from USA were approached but none of them undertook the contract, saying that deadline was impossible. So, with heavy heart, Steve turned to China where a factory set up a dormitory even before signing off the contract, so as their employers could work a 12-hours shift to meet the delivery in time.

After contracts were signed, 8,000 workers were roused from their beds to fit 10,000 iphones a day'.

That's interesting, but where's TEA & BISCUITS? We've saved them for you!

NO body is saying that if Apple outsourced and you should too, or Apple did not oursource, so you shouldn't too. It just means that every business has different short-term to long-term goals and objectives to achieve. In order to make better decision, it's better asking first , whether Outsourcing suits your objectives and if yes, it serves your which objectives long term or short term.

Outsourcing is a solution, and like all solutions make sense, there needs to be some problems first. Are you facing:

  • Lack of access to the professional technical resources
  • Cash crunch preventing you from expanding your team
  • Core members wasting their time doing mundane and repetitive tasks
  • Deadlines for deliverable being pushed back due to resource crunch
  • Rapidly eroding capital base because of ballooning expenditure

If these issues seem a day stolen from your company, sure Outsourcing is good option.

Outsourcing is Solution, But like sore syrup. You will have to set up systems and processes and spend time and energy to find the right partners and get the desired results. Many partnerships just fail because there were no systems installed and no processes defined. Most common reasons behind a failed outsourcing venture are:

  • Misunderstanding of requirements
  • Quality assurance
  • Concerns about intellectual property
  • Security Differences in company processes
  • Communication/cultural barriers

In order to avoid mismatch, it's important that we have the right strategic offshore roadmap and governance model.