Advantages of Outsourcing
Advantages of outsourcing
The advantages and disadvantages of labour outsourcing can be broken down to certain key criteria regardless of the industry.
The cost savings
Probably the most obvious advantage relates to cost savings. Work can often be done at lower cost and sometimes with better quality by service providers.
Savings of up to 60% can be achieved, particularly for tasks that can be outsourced abroad. Contracts are drawn up in such a way that only the work actually performed has to be paid for.
Circumstances such as idle time are the responsibility of the service provider and do not burden the company itself.
Outsourcing teams can be used as a test balloon for exploring new business opportunities.
Outsourcing does not require much effort to set up, no knowledge of local bureaucracy, and is easily and quickly scalable. It is not a long-term commitment but can be used indefinitely.
Concentration on core business
Outsourcing frees the day-to-day business from secondary issues. This makes it possible to concentrate all available resources and energies on the core business.
Savings in infrastructure and technology
Outsourcing eliminates the need for regular investment in the relevant areas, as the service provider takes over responsibility for this business process, and with it the requirement for maintenance and development.
The money saved can therefore be invested in more important areas such as research and development or building the company’s own brand.
Access to expertise
Special attention should be paid to the possibility of having work done by trained specialists. You are no longer forced to invest in recruiting and training expensive specialists to cover areas that are not part of your own company’s core business.
Service providers offer the completion of almost all types of work by trained professionals. This saves money and provides access to expert knowledge, especially if this only needs to be used infrequently.