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Is outsourcing a good business strategy? Let’s find out….

Published: May 5th, 2017

Is outsourcing a good business strategy? Let’s find out….

Outsourcing, as you all know has gained popularity over time, as more and more organizations opt to delegate their business processes to a third party or an external company. You can see that it has become the chief driving factor on how it is that successful companies operate.

There could be many reasons, why one opts to outsource a service. Let’s know why and also if this is really such a good business strategy?


The decision made after much deliberation is not without its merit. Let’s have a look at some of the reasons why business organizations choose to outsource their back-office operations or business processes.

Save money or control operating costs

It is seen that outsourcing helps the organization to save money, getting quality service at cost effective rates. At the same time, operational costs and labor costs are also much cheaper in India, in comparison to some foreign country. So, outsourcing helps to save money.

Can focus more on their core businesses

Data entry, web research, transcription, data processing and data conversion are some of the most common services that are outsourced to a third party, mainly for the reason that it is time consuming and tedious. Hence, if you outsource these services, it would leave you with more time so that you can focus more on your core responsibilities and focus on critical businesses functions.

Deliver quality work with increased efficiency

It is seen that normally you would outsource to a third party, which is more knowledgeable and have decades of experience in the domain as well as expertise in handling complex projects thus contributing more towards the productivity and efficiency of the project. You would also have easy access to top notch professionals.

Would have no need to spend money on infrastructure and resources

When you outsource a service, then in fact you are saving on spending money to set up or build the infrastructure and resources required for successful completion of the project, as the company that you outsource to will have to meet these requirements.

Better access to top notch skilled professionals and quality resources

If you plan to outsource the service, then in fact you would have no need to train your professionals or spend on hiring. At the same time, decades of expertise of the outsourcing service provider in the preferred domain will also ensure that you have better access to top notch experts and better infrastructure.


Here, you can see that outsourcing gives organizations an edge compared to its competitors, helping them to recognize merits of affordable labor, improved quality and enhanced innovation.

If done after proper deliberation and for a proper reason, outsourcing can help in your business growth and success, even as it helps to save money. It is also feasible option, when you lack the resources and the expertise to handle a particular task. From all this, wouldn’t you say that outsourcing is a good business strategy?


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