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Benefits of outsourcing:
o Reduces operating costs by focusing on major business area. This way, the
capital funds always remain available for the core business instead of being
diverted to other supporting portions of the business.
o Outsourcing when taken off shore gives you access to world-class capabilities.
You can leverage global resource networks to support your business. It gives you
another perspective or dimension to the existing business for more efficiency.
o With the shrinking world and cross-culture across the world, it helps employees
to assimilate efficiently in changing the working environment.
o Creates flexibility with the facilities to even provide support in times of industry
uncertainty.
o Speeds up work, shares innovations for best practices. You can maintain
competitive edge with new ideas.
o Frees many resources for other purposes for enhancing or expanding your
business in other directions.
o Renewed opportunities for employees with skill upgrade and access to newer
skills.
o Value and savings gained. This occurs during initial transfer from in- to
outsource as they do the job much more cheaply because of the availability of
huge manpower and similarly larger global business.
Outsourcing, besides cutting costs, can build a virtual large company with a large
work base with the entrepreneur as the sole employee.