The ability of outsourcing to drastically reduce costs is seen as the main reason for its success, but while taking a decision to outsource, many people are only aware of surface cost reductions, like lower labor rates.
If you look a little closer, you’ll see that outsourcing presents many more opportunites for cost cutting.
You get the benefits of additional staff without having to provide office space or equipment.
You dont need to worry about travel, relocation, temporary housing expenses, insurance, vacancies or sick leave expenses.
Saving on real estate costs is another hugely underestimated benefit of outsourcing.
Imagine owning a prime piece of office space in downtown Manhattan, and having it populated by labor that can easily be outsourced. You could use your office space to focus on your core business activities like client interaction and save on skyrocketing real estate rents.
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