Have you ever been thinking why firms use in outsourcing?

I am positive that you already heard term “outsourcing”. It becomes more and more popular. Usually people know intuitively what it means, but cannot explain it in details. Most of people, that I have met, don’t also understand why companies use it.


Autor: Maciek Lulko
Źródło: http://www.flickr.com
I have often been asked the following question – why do firms pay for any external enterprise to do something that they can do by themselves? I need to admit that the logic might seem to have a point – if somebody else can earn money on doing something for us, why wouldn’t our firm conduct it by themselves?
I am going to try to present this on the following example. Imagine for a moment that you own a business that invents and creates new phones. You are wondering about outsourcing managed services- check examples. Therefore, you are looking for a successful company that operates in the field of mobile app development- check the facts. What will your company gain if you decide to do this?
Firstly, you can save money. Developing new complex producst would require employing plenty of specialists that are really expensive as employees. This might be much more beneficial to have to outsource an external company that is specialised in that area and already employs experienced staff. Because of that, it is highly likely to be less expensive to outsource an external enterprise, than to have proffesionals within the structure of your organization. That is one of important thing which makes enterprises use outsourcing. The main target is cost cut. Definitely, not the only 1.
Nonetheless, companies can lessen labor costs also by outsourcing services from the external firm which is located abroad. Certainly, it has to be country which has very well educated workers but cheaper cost labor at the same time. I think India could be the best example of such country which is particularly popular in such services.

Eventually, outsourcign enables to develop the quality of services. For instance, if you agree that mobile app development will be created by outsourced company that specialised just on this field, this will be definitely more successful than if this were created by our employees who might not be specialised in that narrow field of expertise.