Businesses that are always on the lookout for methods of operating as efficiently as possible, in order to gain or maintain a competitive edge, have often turned to outsourcing as an effective way of keeping their overhead low and their responsiveness to market changes high. Business process outsourcing is available for virtually any function within a company and provides a good combination of cost containment and operational flexibility.

Outsourcing in business is done for a number of different reasons, which can be one or more of the following: to increase shareholder value to reduce costs, to foster business transformation, to streamline and improve operations, to overcome lack of internal capacity and capabilities, to keep up with the competition, to gain competitive advantages, to increase sales, to expand and improve service, to mitigate capital investments, to improve cash flow and many other benefits, both tangible and intangible.

Some of the most common areas where business process outsourcing is used are in what are considered the “non-core” or ancillary functions. Typical examples of these types of non-core functions that lend themselves to outsourced services are: accounting, legal service, human resources management, marketing and sales, customer support, information technology, manufacturing, strategic sourcing, logistics and distribution.

It should also be noted that non-core versus core business processing will differ by company and also by industry. For instance, an accounting firm might outsource projects that relate to marketing or to their information technology infrastructure, but would most likely have their own business accounting needs taken care of in-house as opposed to being outsourced. Likewise, a manufacturing firm might turn to HR outsourcing, for their human resources needs, while retaining complete control of all manufacturing processes.

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