Why Do Companies Outsource?

There are many reasons why a company may choose to outsource certain business functions. Some of the most common reasons include:

• Reducing and controlling operating costs (the largest driver)
• Improving company focus
• Gaining access to world-class capabilities
• Freeing internal resources for other purposes
• Streamlining or increasing efficiency for time-consuming functions 
• Maximizing use of external resources
• Sharing risks with a partner company

But these reasons aren’t enough to implement a successful outsourcing program. In fact, companies must ensure they consider every component and are able to meet the requirements for successful outsourcing.