Companies are always looking to cut costs in any way possible. One of the more common ways is via outsourcing, which eliminates the need for more costly full-time positions. Outsourcing provides an opportunity to get the help you need for your business, without the worry about salaries, benefits and office space for new employees. While outsourcing has its drawbacks, there are a slew of benefits with this particular business direction, as well.

Staffing Flexibilities

  • According to CRM (Customer Relationship Management), companies need to be flexible with staffing when demand warrants a need for more or less staff. By outsourcing certain positions, particularly those that deal with customer service, a business has the ability to contract for services as needed, meaning you can pay a company for more outsourced employees as your demand rises and scale back as demand falls. This kind of staffing flexibility is invaluable to businesses that need to pay attention to the bottom line.

Cost Effectiveness

  • Another reason outsourcing is a good idea is because it saves on costs for a company. According to CRM, 80 percent of companies that outsource work cite costs factors as the main reason for doing so. Without the considerations of full-time salaries and corresponding benefits, both of which come at significant cost to a company, a company is free to divert those resources elsewhere. Moreover, the company receives the benefit of having the assistance from an outsourced organization.

Customer Service Expertise

  • Many outsourcing companies pride themselves on training employees to focus solely on the customer experience and how the outcome of an interaction will pay off for the partnered company. Outsourced employees are ultimately more capable of enhancing the experience for the customer and garnering the end result desired by the company that outsourced the work. Moreover, there are no 9 A.M. to 5 P.M. limitations, as outsourced employees work a more flexible schedule in times zones across the world.

Flexible Market Response

  • Companies want to respond to market changes swiftly and effectively. Moreover, they often want to be able to do without having to invest a great deal of time and cost into training new employees. An experienced outsourced company can fulfill a vast array of duties for a particular company and respond quickly to changes in the marketplace since the need to train new people or upend procedures within the organization is not required.

Source : http://www.ehow.com/info_7742862_outsourcing-good-idea.html#ixzz26ZIx7wJY