Benefits of Outsourcing

Cost management

• Realization of cost savings through economies of scale and consolidations
• Personnel cost savings through low offshore salary rates
• Technical cost savings
• Acquisition of cash through liquidation of computers and the decrease in depreciation expense
• Convert costs centre within company to profit centre within vendor's operation
  

Focus on core activities

• Refocus organization
• Reengineer processes
• Accommodate business need to downsize.
• Outsourcing non-core business functions frees internal resources to focus on business-critical tasks

Improved operational quality

• Address system integration issues
• Access to improved backup and disaster recovery facilities
• Increased expertise - benefit from the core business expertise of specialized partners (customers can choose an offshore facility that is specialized in a particular vertical market segment)
• Incremental increases in data processing resources rather than a step function
• We have adopted third-party quality standards (CMM, ISO) which, in many instances, are more rigorous than those of our clients

De-risk business

• Increased access to diverse technologies
• Access to technology without capital investment.
• Access to major and immediate changes
• Distributed and thus lowered risk of running an IT operation
• Reduce technical obsolescence risk
• Stabilize Information System costs
• Provide alternatives
• Facilitation in cases of leveraged buyouts.
• Readily proliferated with acquisitions.

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