22 March 2016
Outsourcing is the process of delegating a business process to a third party or external contractor, leveraging benefits ranging from reduced labour costs and improved efficiency to risk management and service innovation.
A hotly debated topic, outsourcing can have a direct impact on a company's top and bottom line and have become key components of defining how successful enterprises are run. Given below, as reflected by companies, are the top 7 reasons to outsource:
- Controlled operational and labour costs are among the primary reasons why companies choose to outsource. When properly executed it has a defining impact on a company's revenue recognition and can deliver savings.
- Companies also choose to outsource so that they may continue focusing on their core business processes while delegating mundane, regulatory or time consuming processes to external contractors.
- Outsourcing also enables companies to tap in to and leverage a specialist knowledge base, having access to broader capabilities.
- Freeing up internal resources that could be put to effective use for other purposes is also one of the primary benefits for companies that outsource.
- Many times stranded with internal resource crunches, many national and international enterprises outsource to gain access to resources not available internally.
- By delegating responsibilities to external agencies companies can pass off functions that are difficult or risky to manage and control while still gaining from their benefits.
- Some companies also outsource to help them expand and gain access to new market areas, by taking the point of production or service delivery closer to their end users.
- Where there are defined business processes that sit ‘in-house’, considering working with an outsource partner that understands your marketplace, the risks and has knowledge and expertise to add value to your business proposition and potentially reduce costs.
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