The Outsourcing Statistics And Their Costs

     The IT outsourcing statistics usually reveals the numbers of companies that are being involved in applying the outsourcing techniques in their business. But plenty of folks are unaware about the actual costs involved in the outsourcing process. Statistics can give you a better insight of the outsourcing if you look at them deeply rather than slipping through the main figures. This article is also written to unleash few cost related puzzles in outsourcing ventures.

Also note down that the cost of the selected vendor deducts the budget to about 10 percent. The reason is that the cost consists of documentation and research about the vendor and taking in account their responses. The cost also involves the process of negotiating the contract and the legal fees associated with this venture. Few companies also hire the services of some legal adviser who smoothly put them through the seemingly tedious documentation processes. The legal adviser would definitely charge their fees which would also increase the related cost as well.

Then the travelling expenses originate after you finalize the negotiations with the vendor. The travelling expenses rise when you outsource a vendor beyond the continental boundaries. The trip of the management becomes essential if they really want to be comfortable with their vendor selection in the future. Hence you cannot discount the foreign trip expenditures when you plan the outsourcing for your business.

After that there are certain outsourcing accepted models in the business cosmos and you must take a professional help in selecting the most cost effective and effective outsourcing model to reap the real benefits in return. In a nutshell the management has to choose the one model out of 8 most popular outsourcing models floating in the business markets. These outsourcing models are named as the internal delivery model, shared service or captive center model, full outsourcing model, joint venture model, best of breed consortium model, brand service company model, selective outsourcing model and the last but certainly not the least known as the prime contractor model.

The details of each of the above mentioned model are available on the internet platform. Then there is 2-3% charges involved in the transition process of the actual outsourcing. If you are experiencing the offshore endeavor then the transition charges can rise to some higher level. The transition charges basically involve the high level transition project management, the third party consultation and the legal advisor consultation, various communications between the parties, the human capital management costs, all of the legal fees associated to complete the transition in a professionally sound legal manner and the other related technical costs involved as well.

When you start thinking about the outsourcing charges, you are required to perform an extensive research and should be prepared about the charges beforehand. Estimating the outsourcing charges is a very crucial step for your business and the whole process should be preplanned by -your professionals to avoid all types of future complications and hindrances in the best possible manner.

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Posted on 2012-01-26, By: *

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