1. Improve the focus of the company. The Out-sourcing allows a company to focus on broader business issues, leaving the operational details in the hands of an outside expert. It is a tool that enables management of a company have a clearer focus on the needs of its customers. The reason why many companies turn to out-sourcing is because they feel they waste time and resources on activities that can be delegated to third parties. In short, the out-sourcing enables an organization to accelerate its growth and success by investing in areas where there is a clear competitive advantage.
2. Access to world-class experience. For the simple nature of their expertise, an outside expert with a level to meet the requirements of its customers.
-In most cases, the provider has extensive experience in a certain area gained through the years and a unique knowledge of the market for a company is difficult to achieve by simple training or hiring of personnel.
3. Accelerate the benefits of re-engineering. The out-sourcing is generally a byproduct of another powerful management tool: the re-engineering. This is because it allows an organization to immediately make the changes involved in restructuring, by having an outside company (or individual specialist) to take charge of a particular process.
4. Risk Division. There are many risks associated with dramatic investment made by an organization. When companies resort to out-sourcing, become more flexible, dynamic and are more apt to change. Remember that markets, competition, government regulations, financial conditions and technologies change very fast. The out-sourcing is therefore an ideal vehicle to share these risks, since the providers make investments, not so much in favor of a single company, but for his many other clients.
5. Leveraging resources for other purposes. Every organization has limits on its resources.
-The constant challenge is to ensure that those resources are extended to the most valuable areas. The out-sourcing to redirect its resources from non-priority activities to those where they have the best return on your investment.
6. Availability of funds. The Out-sourcing is also a way to reduce the need to invest funds in non-priority activities of the business. Instead of acquiring resources through capital expenditures, is hired by an operating cost base “and used”. The out-sourcing means that the funds are used in strategic areas of business.