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What is outsourcing?
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It is the sub-contracting of work to an outside vendor. Many large companies has been outsourcing work to less developed countries for many years. In the past, work that was outsourced were generally low skills such as call centers, data entry and software programming. However, today’s outsourcing vendors have moved up the value chain by undertaking work such as accounting, financial management, business development, business planning and controlling. Vendors no longer rely on cheap labor to do the work; they employ experienced professionals and PhD holders to take on more difficult assignments. |
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What are the benefits of outsourcing?
- Free up your resources to concentrate on activities that directly impact on your revenue
- Cost reductions through process improvements and economies of scale using shared resources
- Enjoy the services of qualified professionals who are otherwise too expensive to employ
- Protection against loss of knowledge and disruptions caused by staff turnover
- Have access to a wider range of services without hiring more full time staff
- Assured quality of service with clearly defined objectives in Service Level Agreement
- Lower your risks of failure and non-performance by making use of contractual agreement
- Enjoy flexibility and appropriateness of service with freedom to vary the contract
- Save on expensive software and the associated costs of training internal users
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