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Outsource Services – What Significant Advantages Can A Company Gain Through Outsourcing?

The advantages of leveraging outsourcing services are numerous and significant as well. These advantages are the major attractions to outsourcing, regardless of contrary opinions that certain individuals or groups may have. The fear of the unknown has robbed some businesses of the profitable benefits that outsourcing provides. Just like any other business decision, outsourcing comes with potential risk. Fortunately, such risk can be hedged by putting up an extensive contractual relationship in place.

Here are the significant advantages of leveraging outsource services;
Lower Operational Cost:  a company will incur less operational costs by taking advantage of outsourcing. This is especially true about labor cost. It is usually cost-intensive to hire workers in-house when it comes to certain business functions such as IT, call center, SEO marketing as well as specialized areas like engineering.  Also, the cost of securing large office space for the capacity of workforce required in an organization is eliminated by using offshore workers. Subsequently, the fund is re-deployed to core activities that foster business growth.
Revenue; the idea of outsourcing (which involves spinning out a business function to a vendor) provides extra revenue for the organization. The revenue is derived from the surplus of not hiring in-country employees or handling the task in-house. Consequently, the surplus fund is ploughed back into the business for growth and expansion. 

Improved Capacity for Innovation; organizations increasingly take advantage of external expertise to make up for their in-house limited capacity.  This is one of the most desirable strategic benefits of offshoring. 

Superior Operation Control

Outsource services provide improved operation control. It is a wise decision for a company to consider outsourcing its cost-intensive functions, especially the costs that tend to be running out of control. More importantly, an outsourcing vendor will introduce enhanced management skills to an organization.

Access to the World’s Best Pros

A good number of outsourcing destinations, especially offshore destinations are renowned for world class outsourcing expertise in various aspects of business. Such offshore destinations include Philippine, India, China and other locations.  By choosing to outsource its business functions, a company is able to access international reputable experts. Possibly, the company may not have been able to assess such expertise in-country due to budgetary constraints. 

Also, a company gains entry speed to market by taking advantage of outsource services. This is because tasks are performed speedily and more efficiently using advanced techniques. Subsequently, an organization is able to win a large patronage before its competitors enter the market with their products. 

Indeed, outsourcing has continued to yield untold benefits to businesses. However, profound selection methodology is necessary for achieving the best result with outsourcing. Also, the outsourced company should maintain a healthy contractual relationship with the vendor for the benefit of both parties. 

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting


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