Why do companies outsource?
Companies outsource because it reduces their overhead, increases their profit margins, saves training time, onboarding time, new hire costs and HR hassles. The COVID related economic downturn has significantly reduced the size of many organizations. Outsourcing is one way to keep operations moving while staying lean.
According to Brandon Gaille, 46% of companies have cited their top reason for outsourcing was to reduce operating costs, with 12% desiring to access world-class capabilities.
Reasons to Outsource:
- Reduce or control costs
- Gain access to IT resources unavailable internally
- Free up internal resources
- Improve business or customer focus
- Accelerate company reorganization/transformation
- Accelerate project
- Gain access to management expertise unavailable internally
- Reduce time to market
- Improve fraud protections internally