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Go4customer Blog

Obtain Strategic and Monetary Benefits from Outsourcing

Posted by Sanjay Poddar

Outsourcing is rapidly transforming into a fixture in the organizational processes of the 21st century. Initially limited to cleaning, transport, or legal services, outsourcing now covers functions that are in close proximity with the core functions of organizations. As suppliers become closely associated with a company`s core business operations, the threats to maintain these relationships escalate. In reality, the very sustainability of the company can be in peril.

There is no denying the fact that outsourcing offers strategic and economic benefits to companies that are too compelling to overlook. As soon as companies approach outsourcing service providers, they can obtain benefit from decreased operational costs, increased flexibility, enhanced expertise and increased discipline. This enables companies to focus on core business capabilities, which can help them improve their productivity, sales and profit.

Just about every company uses outsourcing today, this wave is growing at a compound annual growth rate (CAGR) of 25 percent as suggested in several surveys. Services specifically outsourced - at least until recently -are those deemed noncore.

From companies point of view, functions including cleaning, transport, catering, maintenance, training, legal, finance and human resources are usually outsourced. In simple words, the less planned the business activity; there is a greater propensity to outsource. But as outsourcing gets popular, it has also left its impact on core business operations as well.

The reason for outsourcing getting closer and closer to the core is the accelerated global competitive market. Today`s companies are left with little choice but to outsource those business functions that lack in adding optimal value. All in all, outsourcing contributes immensely to organization growth not only in terms of revenue and productivity, but also enables companies to gain strategic and financial advantages. So, outsource your noncore business functions to a BPO company and obtain the license to focus on your core capability with ease.

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