1. Cost Savings
When the
activity is your not core business and outsourcing it gives significant lower
operational and labour savings. This will also allow additional bandwidth to
focus on your core business processes.
2. Leverage on outsourcing vendor
Outsourcing
allows your company to tap onto your outsourcing vendor resources and networks.
The vendor can also provide you with links into a new market.
3. Mitigate Risk
Outsourcing
allows the company to mitigate risk in a number of ways. Firstly, outsourcing passes
the responsibilities of delivering onto your vendor, and is especially useful
when your company is not adept in the particular area. Secondly, locating part
of their operations overseas is useful especially when the country where you are
operating in has high risk.
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