outsourcing

The term outsourcing refers to a corporate strategy in which individual services, sub-areas or business processes of a company are outsourced to suppliers and are no longer provided or carried out by the company itself. This targeted use of sub-suppliers can often reduce costs in the areas of production, development and services.

1. cost reduction
   Specialized service providers or suppliers can often take advantage of economies of scale. This makes production cheaper - especially in globalized markets. In addition, certain services - such as tax advice - are only needed a few times a year. Having your own permanent employee is much more expensive. As a rule of thumb, the estimated savings from outsourcing should be at least 20 percent.
2. risk minimization


3. When economic fluctuations occur, the workforce remains more flexible. Outsourcing some areas reduces the risk when things are not going so well for a company financially.
4. time savings


5. Especially for self-employed people and small companies, it takes a long time to learn a new area. They have to get used to it and spend a lot of time - instead of taking care of their main tasks. This time can be saved and invested in other areas.
6. quality improvement


7. Outsourcing to a specialist has a positive effect on quality. In production, outsourcing can produce a better end product.
   
8. core competencies


9. The company can use the freed-up resources for its core business, improving quality and effectiveness in this area as well.




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