OUTSOURCING

Outsourcing is the long-term contracting of a company's business processes to an outside service provider, helping to increase shareholder value by reducing the costs of non-core functions.

The Benefits of Outsourcing
Outsourcing improves performance and profitability. More specifically, its strategic benefits include:

• Reduction of Employee Related Expenses and Issues - Outsourcing can reduce employee related expenses such as salaries, benefits, payroll taxes, and training. In addition, outsourcing can help a company better manage employee related issues such as turnover, scheduling, and human resources.
• Gained Access to Expertise in Multiple Fields - By outsourcing, you have access to the expertise of seasoned professionals with years of experience in a variety of specialized functions. You have access to this talent for far less than the cost of hiring comparable employees.
• Gained Independence - As an independent resource, an outside provider can offer a new perspective that allows for the evaluation and possible reengineering of business practices and processes. This reengineering allows a company the opportunity to incorporate best-in-class practices, thus improving performance and reducing costs.
• Achieved Cost Efficiencies - Through outsourcing the provider can help eliminate unnecessary operating costs while reducing and bringing other administrative costs under better control.
• Greater Internal Flexibility - Through outsourcing, management can focus on strategic issues and initiatives with more flexibility to assign staff and allocate resources to high-value projects.
• Gained Access to Advanced Technology - By outsourcing, a company can implement leading-edge enterprise systems to support the business processes, with lower capital investments and training costs.
• An Increased Focus on Core Business - Management is free to focus more time, energy, and resources into building the company's core business. The outsourcer assumes full responsibility for managing the day-to-day back-office operations.