Why Should You Outsource?
Outsourcing is obviously a means to get work done by talent outside your organizational pool. Companies outsource for different reasons, depending on individual requirements. Some outsource for cost savings, others to gain skills and resources lacking internally, still others outsource in the hope of gaining a strategic edge over the competition. We can, therefore, sum up the most important factors why companies outsource:
Access to the outside provider's lower cost structure allows considerable savings of operational and development costs. At the same time all costs are getting clearly outlined, predictable and therewith manageable.
When companies outsource they become more flexible, more dynamic, and better able to change themselves to meet the changing opportunities. Flexibility can be achieved in terms of capacity and technology. Shifting to a new technology becomes a matter of a notification rather than re-organizations and training courses.
Market agility includes the ability to expand core businesses rapidly and involves better information management for decision making and expansion to new geographic markets.
Improve Speed and Service
Outsourcing gives a competitive edge in terms of deliverable speed, increased service levels and access to specialized skills. Establishing a long-term, strategic relationship with world-class service providers allows a company to adjust the IT requirements to the ambitions of the company rather than being restricted by the performance and output of the corporate IT department.
Thereby companies can also choose for outsourcing in order to:
- Reduce IT overheads, free up resources
- To gain a fresh and new perspective on a stalled project.
- Avoid capital expenditure
- Offload non-core functions
- Focus on strategic thinking and managing trading partner relationships
- Improve company focus.
- To increase project speed and reduce lead time: Use more capacity and exploit the Time Zone Advantage
- Non-core business functions are on an "as used" operational expense basis.
- Share Risks: No investment in trendy new technologies