Outsourcing Definition
Outsourcing is a strategic business decision for Companies to transfer some of the functions to an external service provider.
WHY Outsourcing?
Outsourcing shall help Companies to focus completely on to their core businesses in order to create value added to their own clients.
Outsourcing;
A Strategic alternative to ;
- Improve Operating Performance
- Improve Management & Control
- Reduce Investments in Assets
- Increase Flexibility to meet Business Conditions
- Obtain Expertise, Skills & Technologies
- Determine Core Competencies
- Increase Commitment & Energy in Noncore Areas
Outsourcing Benefits
- Improving Quality
- Share our Knowledge and expertise
- Use our diligent, motivated, trained personnel
- Improve efficiency
- Implement effective internal controls
- Finance & Accounting our Core Business
- The service contract forces the responsibilities to be defined
- Uncontrolled changes are avoided
- Risk of Audit issues are reduced
- Reduce headcount
- Reduce employee administration-recruitment,HR
- Reduce the cost of training of staff
- Reduce the risk of tax penalties
- Cost saving
- Reach best practices
Needs for Outsourcing
- Necessity for high quality personnel
- Requirement for meeting demand at peak.
- Requirement for reliable and consistent data.
- On time closing and financial reporting
- Requirement for reliable information systems
- Requirement for improvement on business processes.
- Cost Controlling requirements in middle and long term periods.
- Requirements for improvement of business performance.