Off The Plate: Reasons Companies Outsource Services

Decades ago, companies were particular about who runs their business. There’s always an in-house accountant or payroll staff, sales manager,or even an IT personnel.Even if the company does not specialize in accounting or IT,such processes,no matter how inefficient, are kept in-house.

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Image source: rethink-hq.com

But a few years ago, outsourcing has become a trend. Many big and small companies are outsourcing some of their major functions to efficient service providers. Outsourcing is the strategic use of resources (or workers) outside the company to perform tasks that previously handled by internal staff. Outsourcing has become routine part of operations in certain industries, and a lot of companies benefit from outsourcing their services. Here’s why companies choose to outsource.

 

Better industry focus

Companies can focus on their core businesses when they outsource. Many companies fail because their workers are distracted from improving main products and services by administrative tasks. By outsourcing services (e.g. IT, accounting, sales, recruitment), companies can leave the job to the specialists while they remain focused at work.

Cost-efficiency

Outsourcing is cost-efficient because companies will only have to pay the service provider as they do work. Having in-house staff members can be expensive, as they will have to be paid even if there’s not much work to do.

 

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Specialized services

Outsourcing agencies specialize in what they have to offer. They can can handle complicated services without disrupting the host company’s operations.
Eddie O’Brien is a certified public accountant, currently serving as the CEO of the Americas at Arvato Bertelsmann. Visit this page to learn more about his professional work and other similar reads.

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Off The Plate: Reasons Companies Outsource Services