Advantages and Disadvantages of Outsourcing

Outsourcing non-core activities such as administration and back office operations helps to put the focus back on the core functions of the business.

One of the biggest advantages of outsourcing is cost savings. The lower cost of operation and labor, and reduction in overhead costs makes it attractive to outsource.

When certain functions of an organization become operationally uncontrollable, outsourcing helps to overcome such difficulties.

By increasing productivity and efficiency, a business can be more successful, better-prepared for market challenges and have a streamlined cash flow.

Outsourcing frees an organization from investments in technology, infrastructure and people that make up the bulk of a back-end process' capital expenditure.

Outsourcing gives businesses flexibility in staffing, manpower management, helps you save costs and can also pick the best people to run your core functions.

Offshore outsourcing gives businesses the ability to develop new competencies and skill-sets that can be used as a competitive advantage.