Highlights from blog

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Benefits of Outsourcing

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Reduced Control & operating costs

The single most important tactical reason for outsourcing is to reduce and control operating costs. Additionally, companies that try to do everything themselves may incur vastly higher research, development, marketing and deployment expenses. Access to the outside provider’s lower cost structure, which may be the result of a greater economy of scale or some other advantage based on specialization, is clearly and simply one of the most compelling tactical reasons for outsourcing.

Improve company focus.

Outsourcing lets the company focus on broader business issues while having operational details assumed by an outside expert. For many companies, the single most compelling reason for outsourcing is that several of the ‘how’ type of issues are siphoning off huge amounts of management’s time and attention. Too often, the resolution of these issues are stuck in middle management ‘decision gridlock.’ This creates financial and opportunity costs that affect the organization’s future.

Access to world class capabilities.

Call Enable’s┬ácapabilities are the result of extensive investments in technology, methodologies, and people – investments made over a considerable period of time. AAPl’s capabilities include specialized industry expertise gained through working with many clients facing similar challenges

Redirect resources toward activities which have the greater return.

Most often, the resources redirected through outsourcing are people resources. By outsourcing non-core functions, the organization can redirect these people, or at least the staff slots they represent, onto greater value-adding activities. People whose energies are currently focused internally can now be focused externally — on the customer.

Non-core business functions are on an "as used" operational expense basis.

Outsourcing is a way to reduce the need to invest capital funds in non-core business functions. Instead of acquiring the resources through capital expenditures, they are contracted for on an “as used,” operational expense basis. It can also improve certain financial measurements of the firm by eliminating the need to show return on equity from capital investments in non-core areas.

Share Risks.

When companies outsource they become more flexible, more dynamic, and better able to change themselves to meet the changing opportunities. There are tremendous risks associated with the investments an organization makes. Markets, competition, government regulations, financial conditions, and technologies all change extremely quickly. Keeping up with these changes, especially where each next generation requires a significant investment of resources and dollars, is very difficult and “bet your company” types of investments are all too common. Outsourcing is a vehicle for sharing these risks across many companies. Outsourcing providers make investments not on behalf of just one company, but on behalf of their many clients. By sharing these investments, the risks born by any single company are significantly reduced. The result is that when companies outsource they become more flexible, more dynamic, and better able to change themselves to meet the changing opportunities.

Improve production & eliminate backlogs.

Increased productivity – more work get processed in less time outside the company facility thereby allowing corporate energy to focus on core functions.

Scaleable.

A cost effective solution that may begin moderately can grow exponentially without any increase in capital expense or human resources.