What are the advantages of outsourcing?
Solution:
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.
