A hotly debated topic with pros and cons, both outsourcing as well as offshoring 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 10 reasons to outsource:
- Lower operational and labor 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 significant savings.
- Companies also choose to outsource or offshore so that they may continue focusing on their core business processes while delegating mundane time consuming processes to external agencies.
- Outsourcing and offshoring also enable companies to tap into and leverage a global knowledge base, having access to world class capabilities.
- Freeing up internal resources that could be put into effective use for other purposes is also one of the primary benefits realized when companies outsource or offshore.
- Many times stranded with internal resource crunches, many world class enterprises outsource to gain access to resources not available internally.
- Outsourcing, many a time is undertaken to save costs and provide a buffer capital fund to companies that could be leveraged in a manner that best profits the company.
- By delegating responsibilities to external agencies companies can wash their hands off functions that are difficult to manage and control while still realizing their benefits.
- Outsourcing and especially offshoring helps companies mitigate risk and is also among the primary reasons embarked upon.
- Outsourcing also enables companies to realize the benefits of re-engineering.
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.
[author][author_image timthumb='on']http://newdev.sharesource.com.au/wp/wp-content/uploads/2014/04/1475404_orig.jpg[/author_image] [author_info]Brendon is a driven business owner who looks for his teams to consistently delight their customers. He has started and developed a number of businesses that help companies and individuals get to grips with the global marketplace and the opportunities that come from a connected world.[/author_info] [/author]