Outsourcing boosts efficiency, expert claims

Making use of outsourcing services can make businesses more competitive, it has been suggested.

According to author and outsourcing expert Jack Morkel, the process enables businesses that may be lacking in resources to delegate some tasks to specialist companies, in order to reduce expenditure and use staff for other operations.

Noting that India is a prime location for such organisations, Mr Morkel explained that sales outsourcing is a popular choice, as companies often opt to hand over their marketing activities to an outside entity.

"Due to globalisation and severe competition, Companies want to reduce cost and maximise efficiency," Mr Morkel explained, remarking that outsourcing "is an excellent means of moving ahead in competition".

He stated that the cheaper labour costs in India enable outsourcing firms to pass on savings to their clients and added that the use of a "prompt" workforce helps to raise efficiency levels.

Similar comments were recently made by Daniel Marovitz of Deutsche Bank, who told Computing earlier this week that business practices are likely to improve among firms that opt to take advantage of outsourcing services.

He noted that the practice allows organisations to send its more arduous tasks elsewhere while keeping important activities in-house.