I am convinced that you already are familiar with term “outsourcing”. This term is more and more popular. Very often people know intuitively what it means, but can’t explain it if somebody asks. Plenty of people, which I talked to, don’t also understand why enterprises are so interested in outsourcing.
I have often heard the following thing – why would companies pay for an external company to do something that they can do by themselves? I have to admit that the logic may seem to have sense – if external enterprise is able to earn money on doing an activity for us, why won’t our firm do this by themselves?
I will try to present that on the following example. Imagine for a while that you posess a firm that invents and creates new phones. You are wondering about outsourcing managed services- additional information. In consequence, you are looking for a rewarding company which works in the field of mobile app development- http://www.smtsoftware.com/en/mobile-development/. What would you gain if you decide to do this?
To get started with, you can reduce costs. Developing new advanced producst will require employing a lot of specialists that are very expensive as employees. This might be much more cost-effective to posses to outsource an external company that is specialised in this field and already has experienced staff. Because of that, it is very likely to be low-priced to outsource an external company, than to hire proffesionals within the structure of your firm. This is one of relevant issue that makes enterprises use outsourcing. The central aim is cost cut. Certainly, not the only 1.
Nonetheless, firms can lessen labor costs also by outsourcing services from the external company which is located in the foreign country. Definitely, it has to be country which has very well qualified proffessionals but lower cost labor at the same time. I believe India is the best example of a country which is especially trendy in such services.
Finally, outsourcign allows to enhance the quality of services. For instance, if you agree that mobile app development will be created by outsourced company which specialised solely on this field, it will be definitely more successful than if it were created by our employees who might not be specialised in this narrow field of expertise.