Outsourcing
Outsourcing decisions are mostly driven by the following objectives:
- Achievement of cost/efficiency savings
- Redistribution of business and commercial risk
- Improvements to service delivery and control
- Access to specific skills or expertise
- Business transformation
Organizations are looking to increase margins and show differentiation by reducing their operating expenses via outsourcing their non-core functions like operations that have very structured and matured processes, inputs, outputs, OLAs(operational level agreements) and SLAs(service level agreements), and instead, concentrating on core organizational functions.
