Question

What are the advantages of outsourcing?

Answer 1

Advantages of Outsourcing:

1. Overall cost advantages - It reduces the cost and also saves time and effort on training costs.
2. Stimulates entrepreneurship, employment, and exports-
   Outsourcing stimulates entrepreneurship, employment, and exports in the country.
3. Low manpower Cost- 
   The manpower cost is much lower than that of the host company.
4. Access to professional, expert, and high-Quality services- 
   Mostly the tasks are given to people who are skilled in that particular field. This provides us with a better level of service and fewer chances of errors.
5. Emphasis on core process rather than the supporting ones- 
   With its help companies can focus on their core areas which lead to better profits and increase the quality of their products.
6. Investment requirements are reduced -
   The organization can save on investing in the latest technology, software, and infrastructure and let the outsourcing partner handle the entire infrastructure.
7. Increased efficiency and productivity -
   There is increased efficiency and productivity in the non-core areas of an organization.
8. Knowledge sharing -
   Outsourcing enables the organization to share knowledge and best practices with each other, it helps develop both the companies and also boosts goodwill in the industry.