Why Outsource?

By: Insperity Staff
February 14th, 2011

Employers choose to outsource for a variety of reasons. Here are some of the most common ones:

• Financial reasons. When considering whether to outsource or not, companies should take a look at capital investments that can be avoided. Without outsourcing, you have more fixed costs and more of an investment, generally speaking. With outsourcing, there are better tax treatments, ongoing expenses, and generally lower head counts.

• Maximize funds. Outsourcing, unlike leasing or employing independent contractors, is the result of a business decision to stop committing internal resources to a given task and to employ an outside firm to do some or all of the work associated with the task that is to be discontinued. In most cases this action frees monies for a company to invest in activities that yield a greater return.

• Quality and customer service improvements. Cycle times are often reduced with outsourcing; however, care must be taken to ensure quality remains.

• Drive/support organizational change. To drive organizational change, one strategy is to outsource and then rebuild. Outsourcing can definitely support rapid change.

• Access to technology and skills. If you don’t have the knowledge in-house, you should outsource.

• Accountability and control. When price tags are attached, things get done. This is akin to putting the bargaining value back into the HR relationship.

Did you find this post helpful?  Yes  No

We appreciate your feedback.

Please share.

Why?  Please select one of the following options:

  Too general
  Not relevant to my industry

  Not well presented
  Information is out of date

  Not what I was looking for
  Other

Please tell us how we can improve our content.
Thank you.

Captcha Fail.

Send

Tweet

You may also be interested in:

		Why You Need an HR Specialist A capable Human Resources (HR) specialist is an invaluable asset to any company. HR specialists can help create and nurture.. more »
		What the Yahoo Scandal Can Teach Us About Resume Fraud Even large companies with deep pockets and vast resources can fall prey to resume fraud if they are not diligent in their screening processes... more »
		Trend Watch: Employee Health Benefit Enrollment Continues To Drop If Americans are required to buy health insurance or face penalties, is your small business ready to absorb the costs?.. more »