Why Outsource
Globalization has turned India to be one of the favorite outsourcing destinations. The benefits of Outsourcing are:
Lower costs due to economies of scale.
Ability to concentrate on core functions.
Greater flexibility and ability to define the requisite service more readily.
Specific supplier benefits. For example, better security, continuity, etc.
Higher quality service due to focus of the supplier.
Improved internal management disciplines resulting from the exercise itself.
Less dependency upon internal resources.
Control of budget.
Faster setup of the function or service.
Lower ongoing investment required in internal infrastructure.
Greater ability to control delivery dates.
Lack of internal expertise.
Increase flexibility to meet changing business conditions.
Purchase of industry best practice.
Improve risk management.
Acquire innovative ideas.
Increase commitment and energy in non core areas.
Improve credibility and image by associating with superior providers.
Generate cash by transferring assets to the provider.
Gain market access and business opportunities through the supplier's network.
Turn fixed costs into variable costs.