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Why Do Companies Outsource?

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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. 

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