What are the advantages of outsourcing? - Organisation of Commerce and Management

Long Answer

What are the advantages of outsourcing?



Advantages of Outsourcing:

  1. Overall cost advantages - It reduces the cost and also saves time and effort on training costs.
  2. Stimulates entrepreneurship, employment, and exports-
    Outsourcing stimulates entrepreneurship, employment, and exports in the country.
  3. Low manpower Cost- 
    The manpower cost is much lower than that of the host company.
  4. Access to professional, expert, and high-Quality services- 
    Mostly the tasks are given to people who are skilled in that particular field. This provides us with a better level of service and fewer chances of errors.
  5. Emphasis on core process rather than the supporting ones- 
    With its help companies can focus on their core areas which lead to better profits and increase the quality of their products.
  6. Investment requirements are reduced -
    The organization can save on investing in the latest technology, software, and infrastructure and let the outsourcing partner handle the entire infrastructure.
  7. Increased efficiency and productivity -
    There is increased efficiency and productivity in the non-core areas of an organization.
  8. Knowledge sharing -
    Outsourcing enables the organization to share knowledge and best practices with each other, it helps develop both the companies and also boosts goodwill in the industry.
Concept: Outsourcing
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Chapter 5: Emerging Modes of Business - Exercise [Page 111]


Balbharati Organisation of Commerce and Management (OCM) 12th Standard HSC Maharashtra State Board
Chapter 5 Emerging Modes of Business
Exercise | Q 8. 2) b. | Page 111

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