What can be achieved by outsourcing, what should/could be outsourced? What are your reasons for outsourcing?

            Lower costs due to economies of scale
            Ability to concentrate on core functions
            Greater flexibility and ability to define the requisite service more readily
            Specific supplier benefits, better security, continuity, etc.
            Higher quality service due to focus of the supplier
            Improved internal management disciplines from exercise itself
            Less dependency upon internal resources
            Control of budget
            Faster setup of the function or service
            Lower ongoing investment required in internal infrastructure
            Greater ability to control delivery dates (eg: via penalty clauses)
            Lack of internal expertise
            Increase flexibility to meet changing business conditions
            Purchase of industry best practice
            Improve risk management
            Acquire innovative ideas
            Increase commitment and energy in non core areas
            Improve credibility and image by associating with superior providers
            Generate cash by transferring assets to the provider
            Gain market access and opportunities through the supplier’s network
            Turn fixed costs into variable costs

Despite the size of this list, every scenario is different. There may well be equally compelling arguments against any sort of outsourcing arrangement. It is therefore important that ALL the issues are considered before embarking upon the outsourcing course. This assessment should take into account all factors that you can consider.

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