Purpose of outsourcing

The experience of companies operating in developed countries shows that organisations that apply outsourcing-based solutions for the first time usually do so to reduce costs (Mclvor 2006, pp. 9, 21). Often the purpose is to improve, in a simple way, only one function or activity. Positive initial effects usually lead to outsourcing other tasks that are more complex. The essential purposes of outsourcing are  

focus on core competence, assuring competitive advantage  

reduction of overall investment level and release of investment capital, which may be focused on key operations  

more potential for expansion and development without new investment expenses  

transfer of demand uncertainty onto the outsourcee (favourable in cases of high demand fluctuation)  

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At a company, what is the purpose of outsourcing Why are companies doing more outsourcing ... 

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