Outsourcing Benefits

Why Should You Consider Outsourcing?

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Lower labor costs

You can lower your business's labor costs by outsourcing specific functions to other companies. The third-party organization hires the employees to perform the tasks and is responsible for their pay, benefit packages and training. This allows your company to focus its labor costs on your core staff. Outsourcing can also lower your equipment costs. It can be more cost-effective to hire a outside of your organization rather than buy new equipment, relocate or change processes.

Larger talent pool

When you outsource to specialized companies, you can take advantage of a larger talent pool. These companies have access to candidates in other parts of the country or the world depending on where they are located and how many of their positions are remote. The contracting company will also have its own recruiters to find the best candidates for the tasks or prescreened employees that might have the skills needed for your tasks.


Internal staff development

A large project may require skills that your staff does not currently possess. On-site outsourcing, where you bring in contractors to operate at your own location, can let your employees work beside talented contractors and acquire new skill sets. Outsourcing can also help you focus on training and development for internal employees while outsourced employees handle everyday tasks.

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Increased efficiency

Outsourcing allows you to move extraneous functions to more specialized sources. Shifting those functions to companies that specialize in those tasks can lead to greater productivity, efficiency and cost-effectiveness. Your company can increase efficiency by concentrating on hiring, training, facilities and other resources within your core business model. Many times, outsourced employees bring standard processes that they can use to optimize efficiency.

How Others Did It!


Unilever is a multinational consumer goods company that produces and sells a wide range of products, such as food, beverages, personal care, household and cleaning items. Unilever has utilized outsourcing as a strategy to reduce costs, increase efficiency and focus on its core competencies. Outsourcing involves contracting out certain business functions or processes to external providers, who can offer specialized skills, expertise or resources.

Unilever has utilized outsourcing in the following areas..

IT Infrastructure

Outsourcing its IT infrastructure and services to IBM, Accenture and BT in a 10-year deal worth $1 billion in 2005. This enabled Unilever to standardize and streamline its IT operations across its global network of 150 countries and 250,000 employees.

Finance And Accounting

Outsourcing its finance and accounting functions to Genpact, a business process outsourcing (BPO) firm, in 2006. This allowed Unilever to improve its financial reporting, compliance and controls, as well as to access best practices and technologies from Genpact.

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Human Resources

Outsourcing its human resources (HR) functions to Accenture in 2006. This helped Unilever to simplify and harmonize its HR processes and systems, as well as to enhance its employee services and capabilities.

Logistics & Distribution

Outsourcing its logistics and distribution functions to various third-party logistics (3PL) providers, such as DHL, Kuehne + Nagel and Maersk. This enabled Unilever to optimize its supply chain management, reduce inventory costs and improve customer service.

How did Unilever benefit from outsourcing?


Cutting Down Operation Costs!

Unilever has been able to achieve significant benefits, such as:- Saving up to $1.5 billion annually in operational costs.


Focusing on it's Core Competencies!

Unilever gained more flexibility and agility to respond to changing market demands and customer preferences


Productivity Boost

Unilever has increased its productivity and quality by leveraging the expertise and innovation of its outsourcing partners

Other companies Who Utilized Outsourcing 

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“The real power of outsourcing going forward is going to be that it increases an organization’s core capacity for change and growth. The business challenges over the next decade are going to be very different than anything we’ve seen so far and the companies that weave a powerful network of global partners through outsourcing will be the winners.”

Michael Corbett

“The need for access to talent will lead companies to think about outsourcing as a means of accelerating innovation and gaining competitive advantage. This will lead to a transformation of the outsourcing profession where innovation will be valued much higher than pure cost savings.”

Jagdish Dalal

“We are entering a world, where the only legitimate borders for work are skill boundaries.”

– Gyan Nagpal

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