| 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 |
