Advantages of Outsourcing
Outsourcing was the predominant buzzword since the turn of the 21 st century and has now become a part of businesses. It created a paradigm shift in the way businesses viewed their functions, employees and operating costs. The focus of outsourcing was predominantly cost saving. It entailed slicing the activities or functions within the organisations to an external vendor entity who is specialized in it and can achieve the same or better results due to economies of scale.
Outsourcing has become synonymous with a flat world. Let us look at the core advantages that outsourcing offers in today’s world.
1. Cost Advantages – This is the most common reason why most companies and even small businesses outsource a lot of their functions specially HR, recruiting, payroll processing, marketing and sometimes even customer service and customer interaction to companies specialised in it. It also offers a way to negotiate and bargain with the help of different cost structures across the world since the interaction between sellers and buyers across the globe has increased.