What are the Advantages of Outsourcing

What are the Advantages of Outsourcing?

Siloon believes outsourcing isn’t about what you can subtract from a business. It’s about what you can add.

A significant percentage of IT budget and management time is spent on maintaining or building application software. Application outsourcing has proven to be an effective and increasingly popular choice in addressing the expensive and people-intensive application software initiatives of most companies. With IT departments being pressed to do more with fewer people and lower budgets, application outsourcing provides the quality focus, access to expertise and low-cost attributes that make it the logical choice of CIOs today.

Definition of Outsourcing

Outsourcing is the act of obtaining services from an external firm.

Outsourcing can be extremely beneficial for both parties if the outsourcing partner is competent and the expectations are well defined. When administered carefully, outsourcing can contribute to your efficiency and provide a range of advantages including:

  • Reduce and control operating costs - Operating costs associated with fluctuating staffing needs and various infrastructure costs can be expensed rather than amortized.
  • Obtain world-class capabilities - Expand access to technical capabilities and tools through specialized outsourcing firms with strategic partnerships.
  • Focus internal resources - Leverage internal resources with domain knowledge on core business activities by utilizing outsourcing for technical expertise.
  • Accelerate re-engineering benefits - Today's outsourcing models and techniques have enabled some companies to reduce innovation cycle times by 60%-90% and decrease investments and risks by equal amounts.
  • Mitigate Risk - Allow an outsourcing partner to absorb a portion of the risk involved with staffing multiple projects with a variety of requirements and timelines. The Outsourcing Institute's Outsourcing Index reveals the following facts about the use of outsourcing in the US.
  • We can determine if outsourcing would be beneficial to your organization and work with you to establish a cost-effective, strategic approach to outsourcing various functions within your organization.
  • Outsourcing business is no longer a new concept in the industry now. A large number of firms in the USA and Europe have outsourced their businesses for better productivity and quality at a low cost.