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Outsourcing advantages


Surviving today’s business environment has become more challenging than ever!  While in it’s early days   outsourcing  seemed possible only for  larger companies which farmed out many low-end business processes , nowadays outsourcing has become more of a norm than an option. The days when outsourcing was all about cutting costs and saving money are long gone! Today, it has become a distinguished business tendency – a key method for quickly moving things forward , with more effectiveness  and getting to the market more rapidly  than your competitors. Besides that, it is about having access to highly qualified and trained personnel, maximizing workforce adaptability and gaining access to highly competent employees.     Apart from the cost savings, outsourcing is seen as a strategic move that can allow businesses to gain a competitive advantage. It is clearly becoming one of the most significant business trends of this decade.


 Some of the major outsourcing benefits are:

– Expertise: Usually  tasks are outsourced to vendors who are the best  in their field. The outsourced vendors also have specific equipment and are expertise connoisseurs. Effectively the tasks can be completed faster and with excellent output.

– Focus on core competencies: As a company grows, administrative functions also grow. Managing back-office operations and administrative functions takes the time and energy out of any organization. Outsourcing frees companies from having to manage non-core functions, and offers the possibility to put  the focus back on their core competencies. Entrepreneurs and enterprises alike have benefited from outsourcing tasks, and have had more time and opportunity to grow their business.

– Outsourcing enables customers to divert their attention from supplementary tasks and focus on their core functions. Customer care, documentation, IT up gradation and administrative tasks such as internal audit and payroll processing are the non-core tasks for many companies and consume the time of the management if handled in-house. When these tasks are outsourced, the company management can focus on the company’s core competency and bring better services and products into the market.

– Cost Reductions: Cost savings is an important consideration in outsourcing decision. Outsourcing enables companies to  reduce their costs on resource management, labor, space, etc.This particular aspect  remains one of the prime advantages. Companies look to outsource tasks which would be more costly to complete in-house. There may be significant fees required to retain the services of an industry expert on a contractual basis but the efficiency of this individual will enable him to complete the task much more quickly than it could have been done in-house. If the task were not outsourced an in-house employee would have had to complete the task and may have taken significantly longer costing the company more in the long run.

– Quicker and better services : Make your service offerings better with high quality features and cut back on  the lead time it takes for your product to reach the market. As a consequence  you would be faster in getting your ideas reborn  into products and better at delivering the value-added proposition.

– Time zone advantages : Besides  the cost advantage, the other much evident  benefit relates to the  time zone differential between your country and the location you are outsourcing to. The job can be completed  while your working hours are  closed for the day.Just wake up to your service being delivered the next morning. This unique advantage gives you the benefit of round-the-clock business operations.

– A Larger Workforce : another advantage to outsourcing is the benefit of enjoying a larger workforce when necessary without the problems encountered when maintaining a larger staff. Through outsourcing companies can bring in additional employees on a contract basis during times of prosperity without worrying about having to lay them off or keep them utilized when the surge of work begins to wane. This is particularly relevant in industries which enjoy peak seasons as well as off seasons. Another advantage of having a larger workforce is the ability to generate a larger profit. This is important because smaller companies can find themselves in a position where they can compete with larger companies for bigger jobs by outsourcing a portion of the workload.

– On Call  Experts : having these experts on call also provides the potential for new opportunities for the company. With experts waiting in the wings to assist, the company is able to go after larger and more specialized types of work. This is important because in doing this the company can find themselves enjoying greater prosperity.

– Human resource advantages : As a result  of outsourcing, not only financial or experienced workforce  advantages can be obtained, but also reduction in human resources. Just to outline the main advantages : the reduction of absence through illness, activities and costs related to recruiting, training and motivating of staff .Thus outsourcing has not only cost benefits, but also human resources benefits.

– Increased  Flexibility : more flexibility is another considerable advantage to outsourcing work. Even the most well planned projects may suddenly end up behind schedule or under a time crunch due to minor errors, changes in plans or other incidental activities.

When outsource, look for suppliers who are credible in that particular business area and suitable with your needs, remain flexible as needs change, have the skills you need, can save you money and offer the quality of service you need.