Contractual flexibility: The contractual nature of an arrangement with a service provider has two distinct benefits. The first is that it means that a business can set specific conditions that must be attained, with attached financial penalties and the opportunity for legal redress. This is rarely the case with internal services. Secondly, the arrangement can also allow businesses to achieve greater quality in processes such as recruitment by negotiating a new service level agreement with their provider, such as expansion of a service to meet the needs of a growing core business.