For a number of very valid reasons, outsourcing has become a very popular alternative. By having processes such as manufacturing and assembly done in overseas locations, it is initially emerged as a way for companies to cut costs. The cost were much lower. Lower wages and operating costs both contributed to these reduced costs. The lower costs were appealing because they greatly improved the profit margins for the companies. Outsourcing is now gaining in a popularity for a variety of other reasons. Cost reduction is still a primary advantage, other elements such as access to industry experts, a larger workforce and more flexible options are being embraced as welcomed advantages offered by outsourcing.
The original purpose of outsourcing is the reducing costs and even though it since to be demonstrated to have other significant advantages, one of the prime advantages is the cost reduction it still remain. To complete in-house, companies look to outsource tasks which would be more costly. For instance, a software related task requiring specialized training. Companies who do not have an staff employee qualified to complete the task that can benefit financially by outsourcing a task.
To retain the services of an industry expert on a contractual basis, there may be significant fees required but the efficiency of this individual will enable him to complete the task much more quickly than it could have been done in-house. It would have had to complete the task and may have taken significantly longer costing the company more in the long run if the task were not outsources an in-house employee.
In on call, it also provides the potential for new opportunities for the company. The company is able to go after larger and more specialized types of work with an experts waiting in the wings assist. This is an important because in doing this, the company can find themselves enjoying greater prosperity.
The larger Workforce is still one of the advantage of outsourcing, this is the benefits of enjoying a larger workforce when necessary without the hassle of maintaining a larger staff. In additional employees on a contract basis during times of prosperity without worrying about having to lay them off or keep them utilized when the surge of work begins to wane through the outsourcing companies. Having a larger workforce is the ability to generate a larger profit. Why is it important? This is because smaller companies can find themselves in a position where they can complete with a larger companies for bigger jobs. This is by outsourcing a portion of the workload.
Flexibility is another considerable advantage to outsourcing work, even though the most well planned projects may suddenly end up behind schedule or under a time crunch due to minor errors, changes in plans or other incidental activities. Those smaller companies who do not have the resources to compensate for the inevitable mishaps. The companies can take advantage of outsourcing in times of trouble, this is to help them to deal with problems without alienating clients.
REFERENCE:
http://www.streetdirectory.com/travel_guide/16672/outsourcing/the_advantages_of_outsourcing.html
http://actionelectronics.com/BlogRetrieve.aspx?BlogID=4512&PostID=185868
.http://www.streetdirectory.com/travel_guide/16672/outsourcing/the_advantages_of_outsourcing.html
http://www.outsource2india.com/why_outsource/articles/benefit_outsourcing.asp
