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OUTSOURCING is the delegating of a process within a company's business to third parties or external partners (agencies), with the effects and creation of benefits such as a cheaper labour force, better quality products or services, right up to introducing innovation into existing business processes.
When outsourcing crosses national borders and is managed by a local company, it becomes offshore outsourcing.
One of the main advantages of outsourcing is the direct impact it has on company profits.
The following are some of the strongest arguments that support the use of outsourcing, and are based company business practices:
1. Reduction of operating and labour costs, direct impact on company revenue and significant savings.
2. Facilitates focusing on the company’s core business, while delegating to outside agencies those daily processes that consume valuable time.
3. Entry into the database of global knowledge and skills, thereby accessing global trends.
4. The freeing up of internal resources that can otherwise be used more effectively for other purposes.
5. The allocation of resources not available internally.
6. Delegating responsibilities to outside companies or agencies can relieve you of business obligations and tasks that are difficult to manage and control.
7. Outsourcing, especially offshoring, helps companies minimise risk.
8. Expansion and access to new markets by bringing the final product or service closer to the end user.