Domestic Outsourcing-Definition
Let’s start with Outsourcing – a familiar term and by now a common word in the business parlance whereby resources outside are engaged in getting the work done. And the service provider is usually located outside the ambit, and hence called “Outsourcing”.
Domestic Outsourcing refers to the engagement when you offload your workload to resources residing locally so as to stay in touch in terms of timeline and other associated benefits.
There is this misconception that continues to grip the world’s attention that offloading work to a distant land cheap in labor cuts down the cost. On the contrary, the actual costs climb upwards and so does the total cost of ownership. The time zone is always a pain point given the fact the geographical locations brings about its own limitation wherein the minimal lag can be a day, if not more at any point in time. In the name of economics, the critical compromise is on the productivity, which for some reasons isn’t the primary focus until things tumble and get way out of control.
Domestic Outsourcing, on the other hand, spells a win-win proposition as the Vendor is in the vicinity for any kind of consultation\clarification as part of the collaborative effort expended in the engagement. The cost overall, too, works out the same, if not less.
Domestic Outsourcing - When?
- When an IT organization is trying to reduce its cost of supporting business applications without impacting the customer satisfaction of business units served by IT
- When an IT organization is interested in experimenting with outsourcing without outsourcing the entire IT department
- When there is the need to refocus on the disparity in the domestic market between supply/demand – when there aren’t enough resources to meet the huge potential.
- When you outsource to an offshore location that is 12 hours away then people on both sides wait for things to get done and the net of this wait is significant productivity loss that costs companies dearly.
- People need to work at odd hours to support their customers or to get work done from their consultants. Such abnormal behavior works only when the compensations in the country providing the services are low and supply of resources is more than the demand in the countries off-shoring the work
- As the demand for such services increases and supply does not increase in proportion, it is hard to sustain any kind of service commitment. Over the long run the cost of off-shoring and then re on-shoring far exceeds the short term gain that a firm may realize.
- Re on-shoring may even be more difficult because people with core knowledge of the systems won’t be available and the hiring costs will prove high for the client as part of their re on-shoring effort.
Why Domestic Outsourcing with tier-1 companies does not make sense?
- Their billing rates are too high
- The service orientation is not that good
- The constraints in offering a better value proposition to the customer
- The customer perception that only the big banners are best equipped to deliver the results is fading fast.
- SMBs prefer to outsource their IT projects to the second tier partners.
Why Prospance?
Prospance underscores the significance of the local presence. Prospance is committed to delivering high quality services to its customers and achieves this goal by locating its consultants in the geography of the clients it serves. Prospance’s business model ensures that high quality services do not come with a high overhead for its clients. The business model supports in-person client-consultants interactions thereby ensuring the complex issues can be discussed and addressed as they occur instead of waiting for sun to rise on a different continent. Prospance also gives its clients the ability to throttle up or down outsourcing activities depending on the progress and results from an outsourcing initiative.
Prospance imbibes the basic tenet in business – client satisfaction as a basic requisite and works towards customer delight as a ramp up. The endeavor and engagement will always embody the principles of Customer Service.
Help our clients by identifying the delivery model appropriate and deliver high service quality at affordable costs. Talent pool of highly skilled professionals with diverse domain experience and technological expertise to serve our Clients better – by identifying their needs and implementing solution.
The Solution Offerings
Outsourced Project Implementation
- 100% work performed in US, in client’s time zone
- Minimum 25% reduction over on-site TCO
- Consultants work in the same time zone as the client
- Productivity of an on-site collocated team
- Regular on-site meetings of all team members
- Maintain project documentation in Knowledge Management System
Outsourced Application Support
- 100% work performed in US, in client’s time zone
- Minimum 25% reduction over on-site TCO
- Consultants work in the same time zone as the client
- No productivity loss waiting for consultants to respond from a different continent
- All consultants attend knowledge transfer sessions without getting their Visa stamped
- On and off-site staff work on rotation schedule
- On and off-site team members work from one location to address all critical issues
The Benefits
Prospance Inc – Your Domestic Outsourcing Solution provider
- 100% delivery in US in client’s time zone
- Minimum of 25% reduction in TCO compared to in-house activities
- Increased organizational productivity because of shorter times to issue resolution
- Schedule same day in-person meetings with consultants
- No expensive infrastructure and network redundancy costs imposed on clients