On-demand outsourcing
[1] The reasons for general outsourcing can be summarized in following factors: the rising wages of the domestic worker, or companies wish to gain access to the exceptional capability.
Therefore, the service provider has to consider the order of resource allocation into different departments, according to the needed level and price offset by the companies.
Firstly, it should include the creation of a competitive advantage; this is an important element that should form the basis of adopting this type of outsourcing.
[citation needed] Secondly, on-demand outsourcing demands that the managers spend more time in streamlining the activities that are important for business success.
Originally, HSBC made the decision on outsourcing mainly because the bank started to find it difficult to update its technology and services at the same pace with the rapidly changing financial and digital world.
In 2013, IBM prepared to renew this IT contract in India to compete with intense multinational and local Indian rivals that they had never faced before.
The BPO outsourcing contract for managing software application and computer networks for Airtel is now estimated to be worth over $2.5 billion.
The social drive has been leading business managers to meet and discuss the future of their cooperation partnership jointly, thus enhancing each of their respective operations.
[9] Analysts believe that India is an ideal country that has undergone tremendous market revolution through a diverse on-demand outsourcing.
The analysis reported that India was still the world's backoffice, whereas it put too much attention to 'servicing' information technology to other countries such as the United States.
However, there will still emerge new challenges that India will have to face in such a rapid-growing, competitive environment, such as they should consider recruiting the workforce based on quality and not quantity.
According to a survey conducted among eight countries in Europe, Finland had 19% of its total goods and services using on-demand outsourcing while the United Kingdom and Spain were at 17%.
[20] Dell, a privately owned multinational company based in the United States, is one of the largest technological corporations in the world, employing more than 103,300 people worldwide.
Dell moved its customer services and technical support centre to Bangalore in India in 2001, and set their second site in Hyderabad in 2003.
[24] Forbes also concluded that some factors that may lead to failure for companies using outsourcing services, such as desire for in-house expertise and marketplace pressures.
[25] With the growth of the global economy, it is believed that more countries, such as Brazil and Russia, will put their focus on providing on-demand outsourcing industries and services.
From the perspective of individual companies and organisations, their local increasing labour wages, facilities cost and other competitive factors will make them use such customized outsourcing service in more areas of their business.
In a competitive market, Internet-enabled on-demand outsourcing has created an immense cost reduction and achieved higher quality of goods and services.
