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Why Do I Need to Outsource?

By December 4, 2012

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Maybe you don't need to outsource, but most companies do need to at least look at what outsourcing can do for them, to help some of the uncertainty of the coming year. Once we get past the Fiscal Cliff, corporations will need to deal with the consequences. Taxes will be up and your customers (or your customers, customers) may be affected by the reduction in government spending as budget cuts take a bite out of government procurement, reducing revenues to private companies.

The key to outsourcing is to identify functions that you currently run yourself, that either don't run well, or cost too much to operate or both. Most firms would agree that if they have managed a service for years, and it still fails to meet the needs of the end-users, with high complaints and excessive costs, then management needs to take a serious look at outsourcing and other alternatives. If the quality is good but the price is too high, or if the price is good but the service needs improvement, then outsourcing may still be an option to solve these problems, but outsouring may not be the first step you take to deal with these functions. So... prioritize!

Take a good look at your budget. If it's going to be very tight, you just might want to have an outsourcing project semi-developed in case you need that extra latitude if your budget is reduced or if costs go up. You don't need to execute on every plan, but it 's much better to develop the plan before you need it!


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