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What is Outsourcing?
05 Feb 2015 | No Comments

Have you ever heard about the word outsourcing? Are you familiar with this business solution? Do you know if it is compatible with your business model? Can Outsourcing reduce cost? Why big companies outsource?

Before we can answer all those questions we would need to understand what outsourcing means. We can define it as an arrangement between one company to another to provide a service. And when we are talking about services we are referring to a large numbers of functions that one company does and can be adopted by an outsourcing company, this would not only reduce the cost involved, but the number of transactions that the outsourced company does, resulting in saving money and reducing their market friction.

Outsourcing services can be made in many different forms such as, virtual executive assistants, marketing directors, graphic designers, transcriptionists, paralegals, web designers, HR consultants, bookkeepers, PR directors, messenger services etc. More businesses are outsourcing tasks these days because technology has advanced to the point of professionals being able to work from anywhere in the world.

Outsourcing has become in high demand, as example of that we can see that the largest and most important companies in the world are outsourcing more of their functions as this has been proven to be a very efficient method off delegating tedious, time consuming tasks as well as in most cases, it has been proven to be a cost-effective method of carrying out departmental functions without any internal issues/difficulties. Some other benefits of outsourcing are as follows:

1. Focus On Core Activities
2. Cost And Efficiency Savings
3. Reduce Overhead
4. Operational Control
5. Staffing Flexibility
6. Continuity & Risk Management
7. Develop Internal Staff

It is time to look at your internal operations, study your departments and reflect upon if outsourcing would add value to your company incomes and structure

Useful Links:
1) Global Outsourcing
2) Online Consultancy

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