Outsourcing for Cost Reduction and Risk Management

Outsourcing has become an accepted, practical approach to cost reduction, risk mitigation, and operation efficiency. By taking advantage of lower operating costs, greater flexibility, and reduced risk of error, companies can benefit from the positive impacts outsourcing offers.

Outsourcing can allow your organization to accomplish work at a low cost with higher efficiency. Tasks such as call centers, book keeping and accounting, software development and more can result in cost saving opportunities of 50-70% or more.

Mitigating risk is accomplished when outsourcing firms are able to streamline a process (for example, bookkeeping and accounting) where human input can cause mistakes. By reducing manual data entry, mistakes become extremely rare.

According to a blog post by SIAPartners, while cost reduction and mitigating risk are two key benefits when considering outsourcing there are other advantages you should consider as well:

• flexibility in adaptation of new organization structures, technologies and business focuses
• reduced training cost
• potential for reduced employee benefit costs
• ability to add investment to potential growth
• greater flexibility to pursue mergers or acquisitions
• improved performance and focus on primary responsibilities
• less risk of human error compared to traditional contractors

At Process-Smart, we can help you build an offshoring strategy that works for your company. Please reach out to us by phone or email to discuss a free pilot to help you recognize the benefits of partnering with us.