The new mantra in outsourcing world is, look beyond cost and labor arbitrage. Gone are the days when management in a desperate way to cut costs would look up to outsourcing as the ultimate savior. Gone are the days when variables like cheap pricing, reduction of overheads, labor arbitrage would take center stage. When organizations only used to outsource non core functions like customer service and data entry etc.
But now things have started changing. Today executives try to be more organic about the whole issue. Lots of them previously have burnt figures while chasing impossible deliverables. Today, benefits of outsourcing against business
deliverables like reduced defects or rework, increased speed to market, new market opportunities, lower working capital requirements etc are measures beforehand.
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