Project Outsourcing

The Indian Embassy in the United States of America has contracted a firm by the name of Travisa Outsourcing Inc. to collect visa applications and deliver visas. As mentioned by Mr. Ronen Sen the new system will offer speedy and efficient service to the growing number of people traveling to India from US due to the increased tourist activities, business transactions and other various non stop services provided to the people. The Travisa centers will provide same day delivery of visas for applications submitted to its offices in person and provide next day delivery for applications received by post. The services of and outsourcing agency are being acquired because of severe constraints of space and shortage of trained personnel which resulted in a poor service and unsatisfied customers.

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Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the product or service will be sold or consumed. The benefits of outsourcing are well known to everyone. Firms can reduce lead times, capital outlays, accessing manufacturing and development expertise and employing better management skills from across the globe. Such a process involves strong relationships and a mutual contract between the two firms. Ensuring quality across the whole process is a Herculean task which needs to be addressed to provide better quality goods and services.

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The decision to whether outsource off-shore or on-shore varies across different industries and firms. Off-shore outsourcing has gained momentum in recent years and many managers have begun to evaluate its

Outsourcing has existed, quite possibly, since the advent of the industrial age and maybe so even before that dating as far back as when craftsmanship was still in its embryonic stages. Evolving through the passage of time, outsourcing has manifested itself in many forms yet one thing that has almost been synonymous through the vast annals of trade and industrialization has been the impact that outsourcing has brought upon the economical structure of a community. Indeed outsourcing has stood as a silent yet formidable business strategy that has harvested gold for many yet wreaked havoc for the ignorant.

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Over the coming years what will be the key developments in outsourcing? Has outsourcing reached its peak or will it continue to grow over time? Will growth encompass new sectors or will it focus of the same areas? Will service be considered as the primary driver rather than cost? Will there be a change in the nature of outsourcing? Is there a move to strategic partnerships? Will insourcing gain more popularity than outsourcing? Will there be greater variation in the way tasks are carried out?

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Over the years as world trade has liberalized, outsourcing has become a favorable tool of businesses in the developed world. These businesses are increasingly turning to India, China and Costa Rica to take advantage of their English-speaking, educated and well trained workforce. Outsourcing helps in effective management by controlling outcomes, obtaining cheaper services from these solution providers and letting the business focus on its core competencies. However, the business operations become dependent to a great extent on foreign cultures, laws, and performance of these service providers. Many organizations are beginning to realize the ethical issues and pitfalls of such outsourcing agreements. There is an immediate need to address these issues in the contracts as they can cause a serious blow to the profitability and credibility of the outsourcer.

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