To do in-House or to outsource that is the question...
Most companies tend to choose the outsourcing alternative to alleviate administrative burdens and to focus on their core competencies and key business strategies.
Why outsource?
According to an article in the San Francisco Chronicle,
"The key to winning in business these days is knowing
when someone else does things better. You can gain a
competitive edge by managing networks or specialized
contractors who can provide services more cheaply and
efficiently than in-house departments. Indeed, the highest
type of efficiency is that which utilizes existing technologies
to the greatest advantage."
Bill Forsyth, chairman of a large accounting firm, indicates that, "Outsourcing can be a major benefit to enterprises. It provides needed skills and actually saves money that can be otherwise usefully applied to a company's operation. It also helps growing companies' keep their energies focused on their core business.
Companies should consider outsourcing any business function that is not tied directly to gaining a competitive edge. The key is to outsource those business functions that do not have a direct impact on generating revenue."
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