Advantages of outsourcing: benefits, reasons to outsource and main outsourcing trends 2015

IT news

3 years ago

Benefits of outsourcing

1. Lower costs

Lower costs are the first and the most obvious reason to outsource business processes. Saving up to 60% of your costs due to the difference in wages between Western and Eastern countries sounds perfect, doesn’t it? Besides low cost doesn’t mean low quality, so finally you get your job done for lower costs and the same or even better quality. 

2. No need in infrastructure

Forget about investments in infrastructure. Your outsourcing partner takes all the responsibility of the operational processes and all issues that accompany outsourcing process.  

3. Higher efficiency

When you decide to outsource your processes to outside supplier, you get his experience from a variety of successful outsourcing projects, his knowledge and expertise in the needed domain. This might be way more effective than starting from the very beginning. 

4. Ability to outsource your routine and focus on the core

As we previously mentioned in our article about successful outsourcing, outsourcing means growth. It allows you to free your experts from routine tasks and focus them on developing the very core of your project and make the best for your business. 

5. No need to recruit and train

Once you find outsourcing company with skilled, experienced and well-educated employees, you no longer need to even think about all the human management processes. Everything will be handled by managers of the company you hired. 

6. Run your business round-the-clock

Hiring an offshore outsourcing company from different time zone gives you awesome possibilities. When the members of your team go home, your outsourcing partner can continue their work. You can leave your critical or urgent tasks to them and get them finished the next day. Add 24/7 customer support and try to imagine how this can empower your productivity. 

7. Flexible staff management

Companies that use outsourcing can run their business even off season and during holiday, or for example maintain their processes during the nonpeak demand with lower costs. 

Why do companies outsource?

The most common reasons are:

  • Vacation of their home experts from routine tasks
  • Reduced operational costs
  • Access to necessary expertise all over the world
  • Risks shared with other company

Outsourcing trends 2015

1. Cloud outsourcing

Multisourcing cloud-based model is now gaining momentum compared to traditional outsourcing scheme. Workload is tending to move from centralized infrastructure to specialized cloud. This trend gives rise to a different operational model and a new paradigm of IT outsourcing.

2. Outsourcing switches to outcome-based pricing models

Business analysts observe the move to contracts whose price is based on the business outcome of the company that uses outsourcing. This approach seems to be win-win, though such contracts are still a minority because of difficulty to predict some business outcomes.

3.The rise of outsourcing in Eastern Europe 

The number and the quality of outsourcing service providers keeps growing every year, competing more and more aggressively with Western Europe, UK and USA providers. Nowadays lower wages and a wide range of young workers still remain their advantages, but they are competed by serious expertise and a huge number of trustworthy companies with good references.


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