TACTICAL BENEFITS (Short Term)
Access to outside provider's lower cost structure is one of
the most compelling short term benefit.
Capital Funds Available
Outsourcing reduces the need to invest capital funds in non-core
business function and it makes the funds available for core
Not Available Internally
Companies outsource because they do not have access to the
required resources within i.e. HR Professionals.
Difficult To Manage or Out of Control
Outsourcing is certainly one solution for addressing problems
and function that are difficult to manage.
STRATEGIC BENEFITS (Long Term)
Outsourcing allows Companies to focus on broader issues while
having operational details assumed by an outside expert.
To World Class Capabilities
By the very nature of their specialization, outsourcing providers
bring extensive, worldwide, world class resources to meeting
the needs of their customers i.e. HRPM's alliance with Empower
International, a HR Specialist in Australia.
Outsourcing is often a By-Product of another powerful management
tool, business process re-engineering. It allows an outside
organization with a high degree of standards and specialization
to take over the process.
There are tremendous risks associated with the investments
an organization makes. When companies outsource they become
more flexible, dynamic and able to adapt to changing opportunities
and problems e.g. the 1998 Economic Turbulence.