1 Benefits of Outsourcing Services Samantha Peacock Organizational Behavior HCS 370 September 11, 2017 Steve Kovak
2 Benefits of Outsourcing Services Outsourcing is considered by companies t o reduce costs or improve efficiency by shifting tasks, operations, jobs or processes to an external contracted third party for a significant period of time. This type of business venture has many advantages as well as disadvantages for establishments that seek to find the perfect balance in their organizational structure. In 2009, the U.S. Stimulus Act changed the way providers use electronic health records. A local clinic was informed that to avoid penalties they would need to adopt a qualified electronic health records system. The clinic managers discussed two options adopting an in- house EHR system or outsourcing the EHRs. After weighing the pros and cons of each option, the company decided to outsource the EHRs. It was determined that the benefits of outsourcing far outweighed the cons. Some of the benefits are cost advantages, increased efficiency, and access to resources. The most obvious and visible benefit relates to the cost savings that outsourcing brings about. You can get the work done at a lower cost and at better quality. According to "Benefits Of Outsourcing" (2017), "Due to the difference in wages between western countries and Asia, the same kind of work that is done over there can be done in India at a fraction of the cost ” (para. 4).
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