Why Outsource? - A Strategic Initiative

To stay competitive in the changing marketplace, organizations are outsourcing business processes as a strategic business initiative.

Are you finding that the increased complexity of communication, the need for highly available systems, and the challenge of distributed support make it increasingly difficult to contain costs while meeting your business objectives?

Are you aiming to streamline operations, manage capital, raise service levels, and shorten time to market? Do you want to lay the groundwork to leverage best-in-class and emerging technologies?

With globalization, multi firm alliances, virtual corporations, and all the changes brought about by the Internet and Web technology, the business landscape is changing at a rapid pace. As a result, many companies are considering the strategic decision to outsource business processes and management.


Why Outsource?

• To focus more effort and resources on core competencies rather than routine systems operations
• To improve performance through rapid deployment of new software, processes and business systems
• To reduce training and permanent staffing costs, while efficiently managing their working environments
• To capitalize on outside expertise to help meet strategic business needs in the fast-changing industry
• To lay the groundwork to take advantage of the latest, most innovative technologies, including utility access to Web-enabled e-services

Outsourcing is an obvious choice. If you are a Marketing Executive looking to establish a new or existing service or sales line but don't have resources, then outsourcing is a justifiable management decision. Whatever you're needs are, outsourcing can help you cost effectively increase performance and service reliability.

Imagine the cost effectiveness in these few scenarios;

• No cost for employee benefits packages (Health, Pension, and Medical Insurance, etc.),
• Projects are often short term,
• Costs involved: ACD - $50K-$100K, Recruiter (Full time)- $40K-$90K, Server- $17K-$30K, Software- $6K-$8K, etc..

As you can see, your company can invest anywhere from $85,000-$228,000 the just to create it's foundation for a new service or sales line.

You may hear most companies are outsourcing, but don't outsource because of popularity - outsource because it's right for your company.

Companies such as General Motors and Philips have shown why outsourcing non-core functions gives a company immediate accesses to world-class capabilities. By using an "outsourcer" you immediately gain access to state of the art services, up to the minute advances within their specialty, flexibility to deal with technology, all for less cost then if you tried to obtain the same level of performance internally. All without the headaches of running a day-to-day department.

Outsourcing has evolved from strictly a cost savings option into a strategic management tool. Companies, through outsourcing, can become world class entities. They are no longer limited to their own resources. With the right outsourcing partners you become capable of competing with the best.

Can you afford to outsource? The question is, can you afford not to?

Source: www.sitel.be

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