I have worked in an outsource servicing company for several years and moved to another company which is also like a "Factory" for companies for their application development. I say that this is a cleaver strategy, why? of course its the cost.
Imagine that you have a hotel. Of course your primary business is hospitality, your room, service, etc. But, don't forget there is restaurant for that hotel which is quite an important infrastructure.
Sometimes, you may want to hire a permanent restaurant staff, but it will cost you more:
salary which is of course should be competitive
future development
training, etc.
cost of staff happiness, etc.
others?
While if you go to a say "Professional" group that provides experienced, hands-on, mature Chef's that can adapt easily and have been doing their job for years, of course you'll get excellent high quality service with similar cost.
However..
There is downside to this. Companies should be careful not to choose bad outsourcing services. Many outsourcing companies (at least in my country) tend to be a greedy - money oriented. They just hire fresh graduates or people looking for jobs without having to test/audition/interview them and "sell" those people to their clients.
Whereas a good outsourcing service (my former company :D) spent/invest in people development. If company sells product, of course you want your product to be the highest quality. If company "sells" people, of course they would want to have high quality people.
Outsource is not always that bad. I have found many companies that have long term relationship to outsourcing services. Companies just need to find the right outsourcing services.
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I have worked in an outsource servicing company for several years and moved to another company which is also like a "Factory" for companies for their application development. I say that this is a cleaver strategy, why? of course its the cost.
Imagine that you have a hotel. Of course your primary business is hospitality, your room, service, etc. But, don't forget there is restaurant for that hotel which is quite an important infrastructure.
Sometimes, you may want to hire a permanent restaurant staff, but it will cost you more:
While if you go to a say "Professional" group that provides experienced, hands-on, mature Chef's that can adapt easily and have been doing their job for years, of course you'll get excellent high quality service with similar cost.
However..
There is downside to this. Companies should be careful not to choose bad outsourcing services. Many outsourcing companies (at least in my country) tend to be a greedy - money oriented. They just hire fresh graduates or people looking for jobs without having to test/audition/interview them and "sell" those people to their clients.
Whereas a good outsourcing service (my former company :D) spent/invest in people development. If company sells product, of course you want your product to be the highest quality. If company "sells" people, of course they would want to have high quality people.
Outsource is not always that bad. I have found many companies that have long term relationship to outsourcing services. Companies just need to find the right outsourcing services.