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SBP BulletServices- Why Outsourcing?

Outsourcing let the organization leverage the following benefits:

  • Focus on Core Business: Resources are focused on developing the core business. For example often organizations outsource their IT support to specialized IT services companies.
  • Cost Savings: The lowering of the overall cost of the service to the business.
  • Cost restructuring: Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable.
  • Improve Quality: Achieve a step change in quality through contracting out the service with a new service level agreement.
  • Knowledge: Leverage collective genius, world class technical expertise, diversified experience and knowledge of virtual teams.
  • Contract: Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.
  • Operational Expertise: Access to operational best practice that would be too difficult or time consuming to develop in-house.
  • Access to talent: Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.
  • Capacity Management: An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
  • Catalyst for Change: Services provider can be utilized as catalyst and change agent for enabling internal transformational change.
  • Enhance Capacity for Innovation: Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.
  • Reduce Time to Market: The acceleration of the development or production of a product through the additional capability brought by the supplier.
  • Commoditization: The trend of standardizing business processes, IT Services, and application services which enable to buy at the right price, allows businesses access to services which were only available to large corporations.
  • Risk Management: An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.

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