Should we or should we not? This is what many organizations are asking themselves today. It is a hard decision for most whilst for others it is an obvious solution to reducing spiraling costs.
What gets outsourced?
Some of the most frequently outsourced functions included processing services such as payroll, claims and credit card processing, IT services from classic data center through cutting-edge ASP applications, and finally increasingly, customer services.
The drivers behind outsourcing
In the past, organizations would have been uncomfortable with an outside party handling day-to-day tasks, but as outsourcing becomes more common the acceptance level increases. Many organizations have found that by outsourcing they can better concentrate on strategic core business initiatives rather than on the day-to-day operations of their business. However, this is usually not the most common reason for outsourcing. Cost management has been at the forefront of the outsourcing movement. This is now augmented by higher levels of quality - particularly in customer services operations.
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