Focus on Core Business
Access to Talent
Catalyst for Change
Enhance Capacity for Innovation
Reduce Time to Market
Creating Leisure Time
– Outsourcing to countries with lower labor costs.
– Access to intellectual property and wider experience and knowledge.
– Companies can often be more efficient if they are able to concentrate on what they do best, rather than wasting resources trying to develop new areas of expertise.
– Outsourcing firms will guarantee the services they offer, whereas internal processes are not guaranteed.
– Access to operational best practices that would be too difficult or time consuming to develop in-house.
– Access to a larger talent pool and a sustainable source of skills. Often the talent pool of the home market will not sustain growth. Recruiting is also time consuming and expensive.
– An organization can use an outsourcing agreement as a catalyst for major step change that cannot be achieved alone.
– Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.
– The acceleration of the development or production of a product through the additional capability brought by the supplier.
– The trend of standardizing business processes, IT Services, and application services that enable companies to buy at the right price, allowing businesses to access services that were previously only available to large corporations.
– An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.
– The outsourced company will usually be prepared to manage a temporary or permanent increase or decrease in production.
– Outsourcing offers a move from fixed to variable costs and also makes variable costs more predictable.
– Individuals may wish to outsource their work in order to optimize their work-leisure balance.
– Achieve a step change in quality through contracting out a service with a new service level agreement.
– Gareiss, R (2002, 18 Nov) Analyzing The Outsourcers. Retrieved from Information Week.
– Drezner, D.W. (2004) The Outsourcing Bogeyman. Retrieved from Foreign Affairs
– Engardio, P. (2006) Outsourcing: Job Killer or Innovation Boost? Retrieved from Business Week
– Chakma, J., Calcagno, J., Behbahani A., & Mojtahedian, S. (2009, October). Is it Virtuous to be Virtual? The VC Viewpoint. Nature Biotechnology, Volume 27(10). Retrieved from Nature Biotechnology
Is Outsourcing for You?