why outsource?

 

There is no denying that working with your own internal staff has some advantages over outsourcing, such as continuity and vested interests. On the other hand, a properly managed outsourcing of services has clear benefits for a company. These include:

 

  • Reduced overhead costs.

  • Shared risks.

  • Managing peak loads.

  • Reallocation of resources to allow internal staff to pursue new development opportunities.

 

There are many examples whereby a business can positively benefit from some, or all, of these advantages if they adopt the outsourcing business model. For example:

 

  • A company may be considering entrance into a market but does not wish to incur start-up expenses until it sees clear evidence of a solid business case.

 

  • During periods of industry downturn, many companies embark on cost cutting measures, which may include staff reduction. Whilst staff reduction does translate to immediate fixed cost reduction, depending on the areas affected by such measures, this could also result in revenue losses due to ineffective marketing efforts, a drop in quality of products or loss of efficiency in production. The loss of revenue associated with reduction of internal staff, in some cases, may lead to even more catastrophic outcome such as the closure of the company.

 

  • Instances whereby a company has adopted a business model which involves operating from a central location but offers its products through a network of agents and distributors.

 

Regardless of the category your company may fall under, SOS has a solution for you.

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