Benefits of Outsourcing Services
1
Benefits of Outsourcing Services
Latrice Johnson
University of Phoenix
Organizational Behavior/HCS 370
Steve Kovack, Instructor
August 7, 2016
Benefits of Outsourcing Services
2
Outsourcing occurs when a company decides to purchases products or services from an outside
supplier, rather than performing the same work within its own facilities, in order to cut costs.
Successful outsourcing requires a strong understanding of the organization's capabilities and
future direction. It has to be implemented strategically and since it involves weighing potential
cost savings against the consequences of a loss in control over the product or service. Some
common examples of outsourcing include manufacturing of components, computer programming
services, accounting functions, training administration, customer service, transportation of
products, benefits and compensation planning, payroll, and other human resource functions. A
relatively new trend in outsourcing is employee leasing, in which specialized vendors recruit,
hire, train, and pay their clients' employees, as well as arrange health care coverage and other
benefits.
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- Spring '16
- Outsourcing Services
