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Why Outsource

What is Outsourcing?

Outsourcing is the delegation of a business process to an external service provider. The service provider becomes responsible for the day-to-day running and maintenance of the delegated process.

Take the IT giant Microsoft for example. The complete process of manufacturing their products is outsourced to other businesses.

Fees are involved (as you would expect) which vary depending on the service required.

With outsourcing, close, regular liaison with the service provider leads to good practice and optimised efficiency.

What Outsourcing isn’t?

Outsourcing shouldn’t be viewed as a short-term solution to a problem or need. To be truly effective, businesses should consider outsourcing as a long-term solution where an ongoing relationship with a service provider will provide lasting benefits to customers.

Outsourcing shouldn’t be seen as a cost saving measure either; this isn’t always the case.

What can businesses outsource?

Basically anything that you may consider a business ‘process’ can be outsourced.

Here are a few examples where outsourcing can be introduced:

  • Marketing
  • Web design & maintenance
  • Web hosting
  • IT maintenance
  • Manufacturing
  • Accounts
  • Recruitment
  • Switch board (telephone answering)
  • Logistics
  • Distribution (i.e. newsletters, mail shots)
  • Editing (i.e. articles, newsletters)

There are many reasons why a business may consider outsourcing, including:

  • The lack of existing skills to complete a process
  • To replace a poor internal service (may not be connected to lack of skills)
  • Resources are not available in-house to complete the process
  • The process is difficult to manage (in general or due to business growth)
  • The process may be performed better/cheaper by other services
  • You require your employees' time elsewhere in the business
  • The process may not contribute to competitive advantage

“Every business owner knows that wise investments pays dividends. There is no better investment than in the people who make a business work.”

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