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Writer's pictureAnonymous G

Why Companies Outsource?

Updated: Oct 26, 2020

As we move forward to innovation and development, more and more companies introduce new strategies in order to improve their business and one of them is outsourcing.


They could be a lot of reasons why most companies nowadays opt to outsource. We have gathered all that we can from the internet and we have concluded that it all comes down to 2 main reasons:



Reduce Cost Significantly

Outsourcing is known business strategy that helps reduce companies operational cost by maximizing the utilization of outside resources. By outside resources, we mean third party companies that provide manpower services. Most companies outsource internationally where cost of manpower is significantly different. One employee's salary could be equivalent to 2 or more employees in another country.


Focus on core Business Goals and Planning

Facilities and manpower management will be handled by a different company. Thus, giving the main company more time to focus on achieving business goals and planning for improvements that could later be beneficial to the company.


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