Have you ever been thinking why firms use in outsourcing?

I am convinced that you already are familiar with term “outsourcing”. This becomes more and more common. Usually people know intuitively what it means, but cannot explain it in details. Plenty of people, that I talked to, don’t also understand why companies decide to use it.

By: Maciek Lulko
From: http://www.flickr.com

I have often answered the following question – why do companies pay for any external enterprise to do things that they are able to do by themselves? I have to admit that this logic may seem to have a point – if external firm is able to earn money on doing an activity for us, why wouldn’t our company do this by themselves?

I will try to explain this on the following example. Assume for a moment that you have a enterprise that invents and creates new phones. You are wondering about outsourcing managed services- http://www.smtsoftware.com/en/services/managed-services/. So, you are looking for a successful enterprise that works in the field of mobile app development- http://smtsoftware.com/en/mobile-development/. What will you gain if you decide to do this?

To start with, you could save money. Developing new complex producst would require employing plenty of specialists that are really expensive as employees. This would be a lot more beneficial to have to outsource an external firm that specialises in this field and already has needed staff. Thanks to this, it is very likely to be low-priced to outsource an external enterprise, than to employ specialists within the structure of our company. This is one of substantial factor which makes firms use outsourcing. The main target is cost cut. Certainly, not the only 1.

Other articles to read

Which tools we should use for improving vehicle look?

By: Kat R
From: http://www.flickr.com
We all possibly know that automobiles are very useful machines during our day-to-day life. With them we can with out any difficulties move from one location to another.

Nonetheless, companies may cut down labor costs also by outsourcing services from an external enterprise that is based in the foreign country. Surely, it has to be country that has very well qualified people but cheaper cost labor at the same time. I think India could be the best example of a country which is especially popular in such services.
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