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Advantages of Outsourcing

by: Sarah Joson

Friday, September 27, 2013 | Outsourcing News |

Outsourcing has evolved over the years - from being a simple business solution to a complex process that will add value to a company.

Some executives still doubt outsourcing because of security issues and lack of information on how it actually works and how it can be integrated. There are also management challenges in additional employees or projects to monitor and work on by supervisors.

Chief information officers who are hesitant in outsourcing IT processes such as database management and infrastructure miss out on a lot of benefits. Some cases that involve IT outsourcing have proven that although crucial functions are outsourced, strategic power will remain with the client’s camp.

Top advantages of outsourcing

Here are the top advantages of outsourcing as posted at Business2Community.com:

• Reduce capital expenditures such as high staff costs.

• It will be easier to discuss liability issues since it will be included in third party contracts, rather than playing a game of hide and seek with the internal team.

• Data security will be taken more seriously as most IT service providers comply with stringent global standards.  

• Remote customer support is almost always available 24/7.

• There will be lower attrition rates and expenditures on training internal employees.

• IT outsourcing will enable business owners, specifically small and start-up ones, to maximize their budget and access highly skilled and competent experts from around the globe at relatively lower rates.

• Companies will be able to use or lease the latest technology. With a third party service provider, this can be achieved and can help in optimizing an operation.

• Business owners can have gridlocked service level agreements SLAs that can help guarantee a smooth operation.

• Maximize set budget by reducing service and labor costs.

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