Outsourcing offshore

Is all outsourcing the same?
Do I still save money with transformational outsourcing? Are there special benefits?

Questions and Answers

Is all outsourcing the same?

No. Conventional outsourcing is all about saving money. The hot new concept is transformational outsourcing. Transformational outsourcing is an emerging form of IT outsourcing that combines cost saving with the potential for enhanced IT flexibility. According to Prof. Paul P.Tallon, Carroll School of Management, Boston College, the crucial issue in times of increased economic uncertainty is using IT to strengthen strategic flexibility, i.e., responding easily and quickly to changes in the environment by adapting IT aspects: connectivity, compatibility, application and data management. Nevertheless, being forced to economize, several prominent on-line businesses have sacrificed IT budgets, unaware of how they are potentially hampering the corporation’s ability to respond to external events. Transformational outsourcing is an alternative that avoids such critical situations.
 

A 2002 study published by International Data Group, revealed that an increasing number of corporations are using transformational outsourcing as a way to introduce much needed strategic flexibility into their business models. More and more frequently, business and IT executives are not just cost-focused when considering outsourcing but rather investment- and/or opportunity-focused.

Transformational outsourcing means you have an on-going relationship with a savvy IT team - one that knows your business and is available when you need them, allowing you to concentrate on core competencies.

Do I still save money with transformational outsourcing? Are there special benefits?

Yes, transformational outsourcing offers the same cost savings, but you get much more in both short- and long-term benefits: