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TOP TACTICAL BENEFITS (Short Term)

Control Operating Costs
Access to outside provider's lower cost structure is one of the most compelling short term benefit.

Make Capital Funds Available
Outsourcing reduces the need to invest capital funds in non-core business function and it makes the funds available for core areas.

Resources Not Available Internally
Companies outsource because they do not have access to the required resources within i.e. HR Professionals.

Function Difficult To Manage or Out of Control
Outsourcing is certainly one solution for addressing problems and function that are difficult to manage.

TOP STRATEGIC BENEFITS (Long Term)

Improve Business Focus
Outsourcing allows Companies to focus on broader issues while having operational details assumed by an outside expert.

Access To World Class Capabilities
By the very nature of their specialization, outsourcing providers bring extensive, worldwide, world class resources to meeting the needs of their customers i.e. HRPM's alliance with Empower International, a HR Specialist in Australia.

Accelerated Re-engineering Benefits
Outsourcing is often a By-Product of another powerful management tool, business process re-engineering. It allows an outside organization with a high degree of standards and specialization to take over the process.

Shared Risks
There are tremendous risks associated with the investments an organization makes. When companies outsource they become more flexible, dynamic and able to adapt to changing opportunities and problems e.g. the 1998 Economic Turbulence.

   
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