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Benefits of Outsourcing Services
Judy Thuy Pham
HCS/370
November 21, 2016
Professor Kendra Slatton
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Benefits of Outsourcing
Outsourcing has become a more common practice in both larger and smaller organizations.
Larger and smaller companies alike can greatly benefit from outsourcing. Organizations such as Atwood
Laboratories, which is a smaller company, can find themselves in a bind when they experience an influx
of business. Not wanting the current staff to become overwhelmed, Atwood Laboratories needs to come
up with a solution to meet the higher demands due to the closure of the larger facility. The solution they
came up with is outsourcing patient billing to a company that specializes in patient billing.
The Relationship of Outsourced Service & Impact on Organizational Structure
Yeboah (2013) defines outsourcing as the process where whereby firms purchase products and
services from other companies than to make the products or perform the services internally (“The
Relationship between Outsourcing and Organizational Performance,” 2013). When an organization
decides to outsource, they are forming a relationship between them and their chosen company. This
relationship is a collaborating effort with the organization focusing on their consumer needs and the
outsourced company focusing on ensuring that the organizations wants and needs being met.
