Advantages Of Outsourcing | BPO : Business Process Outsourcing Companies


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Advantages Of Outsourcing

The advantages of outsourcing are innumerable. Outsourcing enables companies to work with third party contractors on agreed Service Level Agreements (SLA’s). These agreements ensure that outsourcers work on a set of standards. Following are some of the advantages companies stand to have if they outsource:

  • Quality and Cost advantage: With outsourcing, companies are able to turn their fixed costs into variable costs. Contracts with outsourcers enable companies to reduce costs considerably and manage them by appropriately scaling their operations. Companies no longer need to invest in infrastructure and its maintenance hence considerably lowering fixed costs. Also they are able to access high end services such as legal services and R&D services which may otherwise cost much more if they are developed in house. Besides this companies are able to provide better products and services to customers.
  • SLA’s: Service Level Agreements enable better control of parameters key to the success of the company’s business. They also ensure that outsourcing companies are responsible and liable to work on standards agreed with them in their contracts.
  • Access to venture capital: companies that wish to set up outsourcing firms in various countries get capital funding from the governments to set up shop in their country. They are usually funded to encourage employment and business opportunities in their own country.
  • Scalability: outsourcing is a very flexible option for companies. They can manage fluctuations in business effectively with outsourcing.