- Focus on Core Business : Resources (for example investment, people, infrastructure) are focused on developing the core business. For example often organizations outsource their IT support to specialised IT services companies.
- Cost restructuring : Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable.
- Improve quality : Achieve a steep change in quality through contracting out the service with a new service level agreement.
- Knowledge : Access to intellectual property and wider experience and knowledge.
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