PROS

• Cost savings – through converting fixed costs into variable costs and concentrating expertise on building your business. You can save on operating costs, training costs and staff costs
• Focus on core business – by outsourcing, say, your IT support, you will be able to concentrate your resources on building your business
• Better quality – by using the expertise offered by an outsourcing company you can improve the quality of that particular task or service
• Knowledge – access to a broader knowledge base and expertise not always available in-house
• Improve efficiency – by reducing costs in certain areas of your business you can gain an important competitive advantage
• Investment in your business – save money by allowing the outsourcing business to invest in the latest technology and software rather than you
• Greater leisure time – change an existing work-leisure balance in favour of leisure
• Reduce staff costs – less staff means less costs such as National Insurance, but outsourcing also means sickness/holiday/maternity are all covered. In addition, the management and training can be handled by the outsourcing company
• Company image - creates the image of a much larger organisation and access to the same economies of scale enjoyed by larger companies
• Reduce risk – the outsourcing business, with their expertise, will manage risk for you and will be better placed to decide the best ways to avoid risk
• Improved cash flow – due to no or reduced requirement for office equipment, insurances and so on
• Flexibility - of access to resources/staff as required
• Bespoke reporting - to ensure you are constantly aware of developments in your business

CONS