Outsourcing isn’t always the right answer, in fact it may create more problems than it solves.

Reasons for not outsourcing include:

Your business personality does not suit outsourcing

1. You like to micromanage
2. Your impatient
3. You don’t like to commit
4. You have data privacy and confidentiality issues
5. You avoid confrontation
6. You think outsourcing will solve everything
7. Your not flexible
8. Your want someone else to take responsibility

The function is not suitable for outsourcing

1. Some functions are too complex to outsource
2. The return on investment is not adequate
3. You already have the resources
4. Perception problem with your customers and employees
5. You haven’t established a business case

Problem with the service provider

1. High fees
2. You don’t trust the service provider
3. The relationship is not mutually beneficial
4. You can’t agree on deliverables
5. You don’t make the right decision

Your customers and employees do not support the idea

1. Your customers demand you
2. You don’t have management buy-in
3. Doesn’t agreed with your culture

With an increased focus performance, reducing costs and getting back to core business is at the top of the agenda, back office outsourcing become prime candidates for outsourcing. Outsourcing brings economies of scale, best practices, leading edge technology and expertise.

Reasons for outsourcing include:

Improve your image

1. You need to appear bigger or more competent
2. You need more space
3. Your customers are demanding more from you

Financial benefits:

1. You need to conserve cash flow and capital
2. You need additional sources of revenue
3. You want to reduce your operating costs
4. You want to reduce your administration costs

Manage and govern better:

1. You need to focus more ‘on’ your business than ‘in’ your business
2. You need something done quickly
3. You want to avoid headaches
4. You need to remove bottlenecks and stumbling blocks

Access to experts:

1. You don’t have in-house expertise
2. You get better tools
3. You can share resources and reduce risk