Why Outsource?…Why Not?

  • September 6, 2011
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By Chiena Bondoc

One of the most common initial inquiries regarding outsourcing is “Why Outsource?” The answer to that is simple. “Why not outsource?” This is for the reason that outsourcing can and will benefit a lot especially to you.
Way before, outsourcing was considered a not so significant business option. But as years go by, businesses get bigger in number and better in quality, the more clients to serve, the more non-core activities they had.
These occurrences resulted to outsourcing now playing a big role in the world of business.

But what actually are the benefits of outsourcing? Three of the major gains of business owners when they outsource are (1) they will be able to increase the quality of their products, lessen their costs and focus on their competencies.

To give you more on “Why Outsource?” stuff, here are some others to give you certainty on outsourcing:

There has been a survey conducted regarding the grounds why companies outsource. And according to the survey which is The Outsourcing Institute, Survey of Current and Potential Outsourcing End-Users, the top ten reasons why companies outsource are:

* Diminish and control operating costs
* Enhance company focus
* Obtain access to world-class capabilities
* Free internal resources for other purposes
* Gain access to resources that are not available internally
* Accelerate reengineering benefits
* Deal with functions that are difficult to manage or are out of control
* For the availability of capital funds
* Share risks
* Earn a cash infusion

Still in doubt whether to outsource or not? Then, look for these reasons:

* you intend to lessen operating expenses;
* you aim to maintain your staff levels to a minimum;
* an external service provider can do the work more cost efficiently than you can in-house;
* you do not have knowledge in this area;
* you want to keep this function confidential;
* you have uneven workloads throughout the year and want a variable cost structure;
* you operate in a shift work situation;
* you are expanding rapidly but the growth may not be stable;
* you would like to ease up your management time and concentrate on your core competencies

Surely, you now have an idea. Why outsource? The answer is in you.

SOURCE:
http://www.outsourcingsurvival.com/WhyOutsource.html

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