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Why Outsource

Why Outsource?

“Clearly, outsourcing is no longer just about saving money. It’s now about doing things quicker, more efficiently, getting to market faster than your competitors, having maximum flexibility with your workforce and gaining access to high quality employees you otherwise could not afford.”
Mahipal Komatreddy, VP of engineering for Transport Edge 



5 Key Value Points

1. Focus on core skills
2. Reduce operating costs
3. Free resources for higher value
4. Access to world-class capabilities
5. Resources not available


Best Buy Case Study
According to Robert Willett, CIO of Best Buy and CEO of its international operation “if you move cost to No. 1, you might as well not outsource.”

His top 5 reasons are:
-To get new capabilities
-To get “at pace”-quickly
-To reduce risks
-To tap specialist skills
-To lower costs

Outsourced.SK can assist you with performing an IT Strategic Analysis to determine if outsourcing is the right solution for your business.

Although outsourcing has generally been considered a primary strategy for larger companies, many small- to medium-sized companies are starting to realize the value of outsourcing some or all of their IT needs to nearshore or offshore solution providers. The increase in providers of all sizes in both nearshore and offshore locations give small- and medium-size companies a variety of choices when considering an outsourcing partner.

Think about it, you already outsource some of your work. Chances are that you hire maintenance services to repair your office equipment, clean your office and maybe even water the plants. Why? So you can focus on what you do best.

And why hire a marketing company to assist with your business development? Because they have specialized skills. Shipping a critical package? Do you buy a plane ticket or call a courier service?

IT Outsourcing is done for the same reasons – focus on core business, access to specialized skills, cost savings, the list goes on.

While most people believe that cost saving is the number one reason to outsource, many surveys indicate that improving the company focus is equally important.

In addition to cost savings and focus; availability, utilization and skill sets of internal resources are the other reasons most cited by companies either currently outsourcing or planning to outsource in the future.

  • Focus on core skills
  • Reduce operating costs
  • Free resources for higher value work
  • Access to specialized skills
  • Resources not available
  • Reduce time to market
  • Address peak demand work loads
  • Shared risk
  • Accelerate reengineering benefits
  • Difficult to manage internally

Reasons To OutsourceLeveraging Resources

Often times special projects exceed the capacity or skills of your internal resources. Onsite contractors are costly and their knowledge is lost when the project is complete.

An outsource partner can provide the resources needed during peak demands and then continue to provide maintenance and support to free your resources for other projects.

Cost Savings

Generally, outsourcing to a lower cost market can result in savings of 30% to 35%. Central Europe has a much lower cost of both labour and commercial real estate compared to Western Europe.