As the owner of a company, you would have definitely thought about outsourcing one or more aspects of your business. You are aware about the benefits of outsourcing, but want to know if there is more to outsourcing than just the bottom line. Before you outsource, you want to know why companies have taken the outsourcing route.
Well, you can get your questions answered by knowing more about the 3 R’s of outsourcing (Reasons, Risks and Rewards):
The reasons why companies outsource
- To effectively reduce and control operating costs related to hiring new employees
- To improve company focus and to concentrate on core business activities
- To get access to exceptional capabilities at a cost-effective price
- To free up internal resources for other important work
- To make up for the lack of internal resources in a specific domain
- To maximize restructuring benefits
- To manage a business function that is difficult or gone out of control
- To make capital funds available
- To reduce risks
