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| Drivers Behind Today's Outsourcing Decisions |
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Home > Reduce Operating Costs
Reduce Operating Costs
Companies that try to do everything themselves may incur vastly higher research, development, marketing and deployment expenses, all of which are passed on to the customer.
Benefit expenses alone add 20% to 30% to the cost for a permanent employee. Add to that unemployment insurance, workers compensation insurance, office space, equipment, software, continuous training, human resources overhead, payroll taxes, etc. and the cost can be as much as 40% to 50% more for a permanent employee versus outsourcing.
An outside provider's lower cost structure, which may be the result of a greater economy of scale or other advantage based on specialization, reduces a company's operating costs and increases its competitive advantages. |
