Outsourcing is making a business decision to contract with an outside service provider for a particular service or business process. A common misconception about outsourcing is that the primary goal is to reduce operational costs. While outsourcing does frequently reduce spending, there are often more important and strategic benefits to be realized.
As with any business expense, the primary question business owners and leaders should be asking is: “What business value are we getting from our spending?” The business value that can be delivered through outsourcing can come in many forms, including the following:
Options & Expertise
In today’s business climate, there are options available for outsourcing in nearly all aspects of your business operations. In addition, outsourcing service providers typically offer several levels of services—from outsourcing a simple task to more complete business process outsourcing offerings. The following diagram highlights several of the most common types of outsourcing services: