Benefits of Outsourcing

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What is Outsourcing?

• Arranged By Maryann Farrugia

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• Outsourcing is the process of delegating a
  companys business process to third parties or
  external agencies, leveraging benefits ranging
  from low cost labor, improved quality to product
  and service innovation. When outsourcing
  transgresses national boundaries and is managed
  by companies located in other countries,
  outsourcing takes the form of offshoring.

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Benefits Of Outsourcing

• Lower costs due to economic of scale
• Ability to concentrate on core functions
• Greater flexibility and ability to define the
  requisite service more readily
• Specific supplier benefits.
• Higher quality service due to focus of the
  supplier
• Improved internal management disciplines
  resulting from the exercise itself

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Cont.

• Less dependency upon internal resources
• Control of budget
• Faster setup of the function or service
• Lower ongoing investment required in internal
  infrastructure
• Greater ability to control delivery dates
• Lack of internal expertise

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Cont.

• Increase flexibility to meet changing business
  conditions
• Purchase of industry best practice
• Improve risk management