Besides the significant cost savings, organizations that outsource can address the following issues to become higher performing, and to gain a competitive advantage in the marketplace. Other reason to outsource include:

Sharpen Focus on Core Business — Outsourcing allows companies to focus on core business issues while having non-core competencies taken care of by outside, subject matter experts. For example organizations often outsource IT functions to specialized IT service providers.

Enhanced Access to Talent — Finding, attracting and retaining top talent has been a fundamental business imperative as long as there have been businesses. While access to capital, free markets and a good idea are all critical elements for business success, the firms that have access to and employ the “best and brightest” typically come out on top. Through smart outsourcing, companies can enjoy access to a larger talent pool, and a sustainable source of skilled labor, which is often unavailable at home.  Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.

Improve Quality — Achieve quality improvements to a service or system. Outsourcing may create new and improved workflow systems that increase efficiencies and drive the errors out of processes.

Best Practices — Access to operational best practice that would be too difficult, expensive or time consuming to develop in-house. Best practices often result in significant cost, quality, performance, security, and other measurable impacts on the outsourcing return on investment.

Risk Management — Risk in providing the service is borne by the supplier, not in-house. Outsourced services are offered by a legally binding contract with financial penalties and legal redress. This is not the case with internal services. Risks associated with lawsuits are also eliminated and/or mitigated. If an employee slips on a banana in the office, the employer is liable. If this person is working for your outsourcing partner, they pay.

Change Catalyst  — Outsourcing is not merely a cost-cutting tool, it is also a strategy to achieve organizational transformation. The outsourcing company becomes an agent of change that cannot be achieved alone. They may give a company a well needed kick in the pants.

Cost Restructuring — Operating leverage is a measure that compares fixed costs to variable costs. By offering a move from fixed to variable costs, and by making variable costs more predictable, outsourcing changes the balance of this ratio.

Time Zone Advantages — Outsourcing to countries such as Philippines has a time zone advantage. Your night will be Philippines' day shift. With this advantage outsourcing partners can complete critical work and send it to you the next day, therefore work is continuing even after employees go home. This enables the work to be completed much faster.

Enhanced Innovation — Companies increasingly outsource to supplement a limited in-house capacity to innovate, or develop a new product. An army of in-house engineers no longer means a company can control its fate alone. Instead, many high performing companies are adept at using creativity and skills of workers around the world. This can reduce new product development time and time to market.

Enhanced Flexibility — Outsourcing providers are prepared to manage a temporary or permanent increase or decrease in manpower, often due to business cycles or seasonal variation. Outsourcing can make a business more scalable and flexible.

Improve Customer Service — In today's turbulent economic environment, customer service is more important than ever. Outsourcing can drastically improve the ability to deliver a better customer experience consistently aligned around customer needs, while reducing overhead costs. In turn, loyal customers have a demonstrable impact on the top line, by buying more and referring other customers.

Creating Leisure Time — Individuals may wish to outsource their work in order to optimize their work-life balance, or improve the quality of their work life. Individuals, as well as business, can outsource many time-consuming, repetitive job to improve quality of life, and create more leisure time.  In today's hectic and demanding world, where there never seems to be enough hours in the day, this skill is more important than it has ever been.