The financial benefits of outsourcing
The financial benefits of outsourcing include reducing labour costs, increasing efficiency and reduced capital costs. The most important business benefit is that it enables businesses to focus on their core business – work that serves the customer.
- Define your objectives and critical success factors – establish clear short-term and long-term objectives. For example, reducing costs, generating revenue, reducing capital requirements, speeding up processes, and accessing skills not available internally.
- Understand current costs and performance levels – benchmark current costs against best-in-class performance levels.
- Develop clear requirements – define the processes in detail and develop realistic expectations for results.
- Study options – compare what needs to be done with what is available with the outsourcing vendors.
- Identify and contact outsourcing vendors – can be found through internet based market places such as www.freelancer.com and www.airtasker.com.
- Request quotes from several outsourcing vendors.
- Select outsourcing vendors – have written outsourcing contracts detailing terms, conditions, and performance levels.
- Six monthly review outsourcing results and fine tune outsourcing parameters as necessary.