Reduce and Control Operating Costs
Access to the outside provider's lower cost structure is one of the most compelling benefits of outsourcing. One study in 1993 found companies reporting an average 9% reduction in costs through outsourcing
Freeing Investment Capital
It reduces the need to invest capital funds in non-core business functions
Resources not Available internally
Getting access to technical expertise, Local knowledge, different views of management, etc.
Function difficult to manage or out of Control
Reduce administrative & HR problems
Improve Business Focus
It lets organizations focus in core areas and concentrate on decision making
Accelerated Reengineering Efforts
It allows an organization to immediately realized the anticipated benefits of reengineering by having an outside agency
Freeing Resources for Other Purposes
The Resources freed from non-core areas can be deployed in core areas