Outsourcing’s Appeal Grows During Volatile Times

The purpose behind most outsourcing is to increase efficiency and reduce costs. Firms can go to agencies that provide specialized and time-limited support in investor reporting, analyst research, legal research, regulatory oversight or information technology. “Outsourcing providers often invest in the latest technology, offsetting the expense by sharing the technology among several clients,” writes Melanie Rodier writes for Wall Street & Technology. Outsourcing allows flexibility and seasonal adjustments in personnel; businesses can focus on core missions rather than manage other activities that they may not completely understand. Businesses need to examine their operations, understand the time and costs required for performing certain functions, and ascertain that both internal and external employees meet client expectations. Most outsourcing agreements are short-term contracts, Rodier cautions, because of economic uncertainty. – YaleGlobal