Why Engage in Outsourcing?

In the advent of outsourcing, many companies have been employing the question ‘why outsource’ which also becomes the vocal promoter of the offshore model. Outsourcing work has been tried-and-tested form of business strategy. It is also recognized as a long term competitive approach leading to success. However, the popular question nowadays is not ‘why outsource?’ but ‘why not outsource?’

There are plenty of reasons why one has to engage in the outsourcing industry. In his treatise The Wealth of Nations, Economist Adam Smith said, “If a distant country can provide us with a commodity cheaper than we ourselves can make it, it is better to purchase it of them." As we may all know, outsourcing today is simply an evolution of an idea that has existed since bygone days of trade.

When a company expands in size and operations, it is just but normal to let their focus be redirected to their core activities while the non-core functions can be ‘sent out’ or simply outsourced to sellers specialized in a certain function.

If you are a business person, and planning to do some outsourcing, you may have probably been faced up with the following doubts recently. You may be thinking if your resources can be utilized effectively. A doubt also exists if your current resources capable of supporting new technology. You might also want to know if there is a quicker, more effective method to handle processes. You may also want consider if your team has the operational expertise to do task given, or if they can work at optimum costs.

In spite of outsourcing undergoes many controversies in recent times, industry watchers envisage that outsourcing as a business practice is expected to stand out. There are a growing number of companies that are drawing up plans to outsource work to offshore areas. The trend is obviously in agreement of outsourcing larger volumes of work.

Service providers and merchants are moving up the value chain to contain in their service offering a wide-range of services that require greater skills, research support and expertise. It is therefore not surprising that outsourcing still remains undisturbed today as offshore vendors become more streamlined and improvise on the offshore outsourcing model.