| Benefits of Outsourcing |
- Lets you focus on core business only.
- Reduces capital costs of infrastructure.
- Improved employee satisfaction with higher
value addition jobs.
- Makes best use of competitive resources available worldwide.
- Your Competitors may be doing it.
- Reduce & Control operating costs
- Improve company focus
- Access to world class capabilities
- Redirect resources toward activities, which have
- The greater return
- Non-core business functions are on an "as used"
- Operational expense basis.
- Share Risks
- Improve production & eliminate backlogs
- Immediate access to information & images
- A complete expert and professional solution
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| Reduce & Control operating costs. |
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The single most important tactical reason for
outsourcing is to reduce and control operating costs. Additionally,
companies that try to do everything themselves may incur vastly
higher research, development, marketing and deployment expenses.
Access to the outside provider's lower cost structure, which may
be the result of a greater economy of scale or some other advantage
based on specialization, is clearly and simply one of the most compelling
tactical reasons for outsourcing.
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| Improve company focus. |
| Outsourcing lets the company focus on broader business issues while
having operational details assumed by an outside expert. For many
companies, the single most compelling reason for outsourcing is that
several of the 'how' type of issues are siphoning off huge amounts
of management's time and attention. Too often, the resolution of these
issues are stuck in middle management 'decision gridlock.' This creates
financial and opportunity costs that affect the organization's future. |
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| Access to world class capabilities. |
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Artintel's capabilities are the result of extensive
investments in technology, methodologies, and people - investments
made over a considerable period of time. AAPl's capabilities include
specialized industry expertise gained through working with many
clients facing similar challenges
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| Redirect resources toward activities which have the greater
return. |
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Most often, the resources redirected through
outsourcing are people resources. By outsourcing non-core functions,
the organization can redirect these people, or at least the staff
slots they represent, onto greater value-adding activities. People
whose energies are currently focused internally can now be focused
externally -- on the customer.
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| Non-core business functions are on an "as used" operational
expense basis. |
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Outsourcing is a way to reduce the need to invest
capital funds in non-core business functions. Instead of acquiring
the resources through capital expenditures, they are contracted
for on an "as used," operational expense basis. It can also improve
certain financial measurements of the firm by eliminating the need
to show return on equity from capital investments in non-core areas.
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| Share Risks. |
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When companies outsource they become more flexible,
more dynamic, and better able to change themselves to meet the changing
opportunities. There are tremendous risks associated with the investments
an organization makes. Markets, competition, government regulations,
financial conditions, and technologies all change extremely quickly.
Keeping up with these changes, especially where each next generation
requires a significant investment of resources and dollars, is very
difficult and "bet your company" types of investments are all too
common. Outsourcing is a vehicle for sharing these risks across
many companies. Outsourcing providers make investments not on behalf
of just one company, but on behalf of their many clients. By sharing
these investments, the risks born by any single company are significantly
reduced. The result is that when companies outsource they become
more flexible, more dynamic, and better able to change themselves
to meet the changing opportunities.
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| Improve production & eliminate backlogs. |
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Increased productivity - more work get processed
in less time outside the company facility thereby allowing corporate
energy to focus on core functions.
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| Scaleable. |
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A cost effective solution that may begin moderately
can grow exponentially without any increase in capital expense or
human resources.
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