Briefly explain six benefits that would accrue to a business organization from outsourcing product and services

      

Briefly explain six benefits that would accrue to a business organization from outsourcing product and services.

  

Answers


Martin
Benefit of outsourcing;

• Access to an established and efficient distribution centre
• Ability to focus on product creation and marketing.
• Reduced cost of production.
• Faster setup of the function or service
• Acquire innovative ideas
• Increase commitment and energy in non-core areas
• Improve credibility and image by associating with superior providers
• Greater flexibility and ability to define the requisite service more readily • Less dependency upon internal resources • Greater control of budget
• Greater ability to control delivery dates
• Increase flexibility to meet changing business conditions
• Purchase of industry best practice
• Generate cash by transferring assets to the provider
• Gain market access and business opportunities through the suppliers network
• Turn fixed costs into variable costs

marto answered the question on February 5, 2019 at 05:27


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