Benefits derived from outsourcing can be summarized as follows:
- Reduce and control operating costs
- Improve company focus
- Gain access to world-class capabilities
- Free internal resources for other purposes
- Resources are not available internally
- Accelerate reengineering benefits
- Function difficult to manage/out of control
- Make capital funds available
- Share risks
- Cash infusion
- Understanding company goals and objectives
- A strategic vision and plan
- Selecting the right vendor
- Ongoing management of the relationships
- A properly structured contract
- Open communication with affected individual/groups
- Senior executive support and involvement
- Careful attention to personnel issues
- Near term financial justification
- Use of outside expertise
Top 10 Factors for successful outsourcing
Source: Survey of Current and Potential Outsourcing End-Users the Outsourcing Institute Membership, 1998


