Uploaded on Apr 29, 2022
PPT on Importance of Outsourcing.
Importance of Outsourcing
IMPORTANCE OF OUTSOURCING INTRODUCTION Outsourcing is a concept people get fired up about. Some people love it; others hate it. It seems as though nothing divides a room full of business professionals faster than the idea of sending some services out of house. Source: www.viaante.com COST EFFECTIVE Cost-cutting may not be the only reason to outsource, but it’s certainly a major factor. Many businesses embrace outsourcing as a way to realize cost savings or better costcontrol over the outsourced function. Source: www.viaante.com INCREASED EFFICIENCY Companies that do everything themselves have much higher research, development, sales & marketing, and distribution expenses, all of which must be passed on to customers. Outsourcing the business functions and working with an outside provider’s cost structure and economy of scale can give your firm an important competitive advantage. Source: www.viaante.com FOCUS Outsourcing can help your business to shift its focus from peripheral activities towards work that serves the customer, and it can help managers set their priorities more clearly. Source: www.viaante.com GROWTH While growth is usually a good thing, a business can experience growing pains. A good outsourcing firm has the resources to start a project right away. Source: www.viaante.com REDUCED RISKS Every business and business investment carries a certain amount of risk. Markets, competition, financial conditions, government regulations and technologies all change very quickly. Source: www.viaante.com ACCESS TO TECHNOLOGY Some experts tout outsourcing of computer programming and other information technology functions as a way to gain access to new technology and outside expertise. Infrastructure cost is another major concern when it comes to in-house services. Source: www.viaante.com MAINTAIN OPERATIONAL CONTROL Operations with rising costs should be considered for outsourcing. Departments that might have evolved over time into uncontrolled and poorly managed areas are good candidates. Source: www.thebalancesmb.com OFFER STAFFING FLEXIBILITY Outsourcing allows operations or departments that have cyclical demands to bring in additional resources when they're necessary. The outsourcing company can then be released when things slow down again, maintaining a company's flexibility. Source: www.thebalancesmb.com PROVIDE CONTINUITY AND RISK MANAGEMENT Periods of high employee turnover can add uncertainty and inconsistency to a business. Outsourcing provides a level of continuity to the company while reducing the risk that a substandard level of operation could bring, even over a short period of time. Source: www.thebalancesmb.com
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