Top 5 Reasons Why Businesses Outsource

Why do companies large and small, established and beginner,

Top 5 Reasons Why Businesses Outsource

Why do companies large and small, established and beginner need to consider the benefits of outsourcing? First, let’s define what outsourcing is and who provides it. Outsourcing is often defined as the deliberate use of a third party or external organization to perform non-core tasks that are traditionally performed by in-house personnel and employees. It is the process of delegating certain activities and projects to an outsourcing provider whose staff are trained to handle everything from common office functions to complex IT support and software installation.

Outsourcing: an effective strategy for a variety of industries

Subcontracting things like call overflow processing, dealing with post-sales follow-ups and data verification are just a few examples of time-intensive functions that are commonly outsourced. Whether it’s an offshore call center or Business Process Outsourcing (BPO) provider, these organizations provide unparalleled access to a wide range of focused expertise and technology that would typically be too expensive or impractical to implement for fledgling start-ups.


Outsourcing enables businesses to tap into a cutting-edge knowledge base and gain access to state-of-the-art infrastructure and capabilities. It is a vital tool for short-term projects, seasonal campaigns and time-consuming tasks that drain valuable internal resources. This strategy is utilized not only by new companies trying to get a foothold, but Fortune 500 giants like Google and Skype.


Every organization is unique, and there are many reasons why businesses choose to outsource specific functions for both short-term and long-term needs. Here are 5 of the top reasons why companies outsource tasks.

#1 Tremendous cost savings

One of the largest drivers of business process outsourcing in today’s super competitive global economy is the operational cost savings. This aspect is particularly appealing to start-ups, whose budgets may already be stretched to the limit. Generally speaking, outsourcing customer service and IT tech support can save anywhere from 40 to 60 percent on employment costs, training, and infrastructure.

#2 More time and resources to focus on core operations

Enterprises of all sizes outsource because it frees up internal staff and resources, allowing more energy to be focused on productivity. More attention can be paid to core competencies and effective ways to boost customer satisfaction, and ultimately, profits.

#3 Global operations realize time zone benefits

Having IT or customer support representatives available round-the-clock, 365 days a year is a definite advantage. The Philippines and India are the top outsourcing destinations, and the time zone difference means that agents are on-task, getting work done during the wee hours of the night. 

#4 Outsourcing lets you scale up or down with ease

Market conditions are constantly changing, and regardless if you’re in retail, insurance or another sector, outsourcing enables you to scale up (or down) swiftly without draining cash flow. Companies can weather the flux of tidal markets without investing heavily in new staff or infrastructure by outsourcing their projects at a cost-effective rate.

#5 Gain access to specialized expertise

Most businesses succeed in the marketplace because they can produce or do something very well. This core competency is crucial, but there may be some tasks that are best left to the experts, whether it is tech support or lead generation. The benefit here is having access to skills, knowledge and a talent pool that can help you increase your bottom line.

Date Of Update: 27 February 2019, 14:50

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