Cost reduction should not be the only motivation for outsourcing.
Cost reduction sometimes can be the strongest motivational factor to outsourcing but the modern manager has identified other factors; expertise not readily available in the job market, the desire to be in compliance with complex tax, social and accounting regulations…
On the other hand it is not advisable for companies to hastily make outsourcing decisions as in some cases they could be rather detrimental.
- Refocusing on the core business
- For better management and structuring of the business
- To avoid certain risks (related to stock, investments or training of employees).
- The development of the service provider market and the development of ICTs.