Benefits of outsourcing

While outsourcing can certainly save money and ensuring quality of the outsourced unit can assure quality, these or only the direct benefits among many.

Here are some others for consideration:

Take advantage of an educated pool of available employees.

When done right outsourcing has the advantage of someone else doing the hiring for you in an environment with a much larger and more available candidate pool.

Allows for focus on companies core competencies

Unless you are in the technical support business it may make sense to outsource it to a company that is more agile in scale-ability, quality controls, technology deployment, and infrastructure. The cost of creating a business process unit is at least 50% greater than the direct labor cost.

Reduce risk

Outsourcing provider assumes the legal, operational, and financial risks in large part leaving you more competitive and lean.

Level the playing field

Outsourcing provider pools their resources and provides better equipment, capabilities, supervision, and control by spreading the costs over a larger number of clients. This is especially beneficial to smaller companies which would not be able to compete as well.

Start deploy and scale projects rapidly

The existing infrastructure of outsourcing companies significantly reduces deployment time allowing for a much faster realization of benefits.

Increased efficiency

By outsourcing you leverage the outsourcing providers’ research, security infrastructure, HR department, it support thereby reducing the number of infrastructure investments to be made.

Reduce capital costs

Outsourcing allows for fixed costs to become variable and capital costs to become regular expenses. This creates the financial benefit of being able to write off the cost that may otherwise have to be capitalized and then depreciated.

While benefits are significant it’s important for companies to realize that they need to manage an outsourced operation very closely and set metrics to monitor performance per unit of work or things can get out of control. Another thing to keep in mind is that outsourcing work is doable but you can not outsource liability so care needs to be taken to deploy solutions. Close focus on quality control is therefore mission-critical for most significant outsourced projects.

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