Outsourcing in business


Advantages of outsourcing


Outsourcing can save you money


Implementation costs:


Many companies use outsourcing as a business tool, which gives access to certified IT solutions and professional experts, which definitely saves time and money. In the same time limitation of configuration options and customization simplifies entire process and brings forward implementation.


Maintenance costs:


Maintenance of internal education programs for employees on average involves finance resources, which exceeds outsourcing costs at least two times. Usually, employer pays in taxes up to 85% more than employee salary. (For instance, to pay all taxes of 100 LVL salary, company spends 185 LVL) 


Technical staff downsizing:


Alimentation of own technologies involves high expenditures, in the same time, outsourcing can reduce number of technical personel up to 50%.


• Outsourcing reduce range of responsibilities


Assigning at least one functional area to another company, e.g. technical means, bring benefits in another sphere. According to survey, use of external resources in personel education programs is 31% cheaper than internal courses, although „number of staff/ number of students” ratio in this case is 26% lower. This gives an opportunity to focus on more significant strategical issues.


• Outsourcing rise business productivity



According to results, companies who do not use outsourcing services, are quite concerned about administrative and technical matters. Quite often enterprises are disabled to focus on education, which is necessary to increase business value.



• Outsourcing helps to distribute resources, which gives opportunity to:


 - focus on strategical planning;

 - devote more time to measurements and analytical assessments;

 - devote more time to time management and budget planning;

 - establish closer collaboration with managers;

 - focus on current operations;

 - evaluate new technologies and approaches, which increase productivity and effectiveness of business.