How much is outsourcing worth? At the end Latest Mailing Database of 2010, XMG Global projected the global outsourcing market to be worth 270bn ($425bn), this was a 13.9% increase on the 237bn ($373bn) 2009 market Latest Mailing Database. In 2008, the corresponding market was worth 212bn ($334bn). Why do organisations outsource? Business theory and experience indicate that businesses do best when they focus on Latest Mailing Database those activities that give them a particular advantage over their competitors Latest Mailing Database leaving non-core activities to be performed by other firms.
Therefore, British Airways focuses on managing its network of air services Latest Mailing Database, leaving baggage handling to one of its outsourcing partners. In a survey of members, the Outsourcing Institute found that the top 5 reasons why companies outsource were: Reduce and Latest Mailing Database control operating costs Improve company focus Gain access to world-class capabilities Free internal resources for other purposes Gain resources not available Latest Mailing Database internally Thus a firm could control its operating costs by outsourcing its internal IT support function. This could bring in technical knowhow and capabilities while significantly reducing its overall payroll Latest Mailing Database and benefits costs, as employees would be transferred as part of the deal.
Similarly, a firm could outsource Latest Mailing Database its payroll & benefits processing allowing the introduction of newer and more cost-effective payroll and benefits processing technology. Can micros and SMEs benefit from outsourcing? Outsourcing has traditionally been under-utilised by micro, small and medium-sized enterprises Latest Mailing Database (micros and SMEs), as it involved contracting with the large outsourcers to strike multi-year, multi-million or even multi-billion mega deals. However, micro outsourcing (also known as micro sourcing) allows these firms to gain process efficiencies and cost savings by outsourcing their work to highly skilled freelance workers Latest Mailing Database or independent businesses (service providers) based locally, nationally or anywhere across the globe.