'Saving through Outsourcing'-Myth or Reality? A Case Study of Madhya Pradesh Madhya Khsetrya Vidyut Vitran Company Ltd., Bhopal

In the current era of business scenario where the customers are enjoying customer driven market there exists paramount thrust on manufacturers or companies to stand up to the expectation of customers for their survival. Today's customer is not only demanding but is also very cost conscious and expects innovative and discriminative products. In order to stand up to the customers demands and expectation the companies have to constantly strive for providing better features in their product, better quality, correct timing of product life cycle and high degree of value for money.

To embrace ail the above requirements of the customer under one roof often becomes difficult for the companies or manufacturers, and hence in order to achieve the solution to the above problem the companies peep outside their premises. The business process outsourcing system allows companies to contract for services that are not within the scope of their expertise, so that they can focus their time, money and energy on their core competencies instead of wasting valuable resources trying to gain understanding of areas that are somebody else's expertise.

Business process outsourcing is the methodology, where the company tries to off load the activities which can be carried more cost effectively in the outside market and where it finds that better expertises are available in the market. This is the process by which companies not only save their resources by deploying them into their non core activities but also saves time and money by taking the advantage of expertise available in market.