1Sharper Focus on Core Business — Outsourcing allows companies to focus on core business issues while having non-core competencies taken care of by outside experts. For example organizations often outsource customer service functions to specialized customer service providers.
2Enhanced Access to Talent — Finding, attracting and retaining top talent has always been a fundamental business imperative. Through outsourcing, companies can enjoy access to a larger talent pool, and a sustainable source of skilled labor, which is often unavailable at home. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.
3Improved Quality — Achieve quality improvements to a service or system. Outsourcing may create new and improved workflow systems that increase efficiencies and drive the errors out of processes.
4Creating Leisure Time — Individuals may wish to outsource their work in order to optimize their work-life balance, or improve the quality of their work life. Individuals, as well as business, can outsource many time-consuming, repetitive jobs to improve quality of life, and create more leisure time. In todayʼs hectic and demanding world, where there never seems to be enough hours in the day, this ability is more important than it has ever been.
5Best Practices — Access to operational best practices that would be too difficult, expensive or time consuming to develop in-house. Best practices often result in significant increases to bottom line, quality, performance, security, and other measurable affects through outsourcing.
6Risk Management — the risk is primarily borne by the outsourcing provider. Outsourced services are offered through a legally binding contract with legal redress. Risks associated with labor lawsuits are also eliminated and/or mitigated. If an employee slips on a banana skin in the office, the employer is liable. If this person is working for your outsourcing partner, your partner is liable.
7Change Catalyst — Outsourcing is not merely a cost-cutting tool, it is also a strategy to achieve organizational transformation and innovation. The outsourcing company becomes an agent of change that cannot be achieved alone.
8Cost Restructuring — Operating leverage is a measure that compares fixed costs to variable costs. By offering a move from fixed to variable costs, and by making variable costs more predictable, outsourcing changes the balance of this ratio.
9Enhanced Flexibility — Outsourcing providers are prepared to manage a temporary or permanent increase or decrease in personnel, often due to business cycles or seasonal variation. Outsourcing can make a business more scalable and flexible.
10Improved Customer Service — In todayʼs turbulent economic environment, customer service is more important than ever. Outsourcing can drastically improve the ability to deliver a better customer experience consistently aligned around customer needs, while reducing overhead costs. In turn, loyal customers have a demonstrable affect the top line, by buying more and referring other customers.