subject: Reasons why to Outsource [print this page] Reasons why to Outsource Reasons why to Outsource
Reasons why you need to outsource.
Here are common reasons why to outsource your business/job.
Cost savings. This is the major reason if you ask the companies why they want to outsourse. Many businesses embrace outsourcing as a way of better cost control. Companies usually outsource to a vendor that specializes in a given function and performs that function more efficiently than the company could.
Staffing levels. If you have a 3 staff for a specific job, If you outsource, you can have one skilled/trained person who specializes on the said job and some related to it.
Focus. Resources sghould focus on developing the core business. If they seek for IT support, they should outsource that specialised in IT services companies.
Knowledge. This may be of particular benefit to small businesses, which may not be able to afford to hire computer experts or develop the in-house expertise to maintain high-level technology. When such tasks are outsourced, the small business gains access to new technology that can help it compete with larger companies. May have wider experience and knowledge to the job.
Capacity for innovation. Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.
Commodification. The trend of standardizing business processes, IT Services, and application services which enable to buy at the right price, allows businesses access to services which were only available to large corporations.
Time Management. Time is literally money. The management can concentrate on their key focus areas that demand intelligent, path breaking ideas and give their attention to top priority processes by outsourcing. And individuals may wish to outsource their work in order to optimise their work-leisure balance.
High risk factor. Usually companies involved in high risk industries prefer to insure their risk by handing over the job to a well trained and trusted offshore vendor who has advanced expertise in the subject.
Increase Capacity. If a business will outsource, manufacturing capacity or business capabilities without adding additional personnel, equipment or facilities. This allows the company to leverage their fixed costs.
Market agility. It includes the ability to expand core businesses rapidly and involves better information management for decision making and expansion to new geographic markets. Operational excellence in the form of increased service levels can be achieved when outsourcers use their asset base and human resources to meet clients qualification and standards.
