To outsource or not to outsource

Top 10 reasons companies outsource:

1. Reduce and control operating costs

2. Improve company focus

3. Access world-class capabilities

4. Free up internal resources for other purposes

5. Resources are not available internally

6. Accelerate re-engineering benefits

7. Function difficult to manage or out of control

8. Make capital funds available

9. Share risks

10. Cash infusion

Top 10 reasons cited for choosing not to outsource:

1. Loss of control

2. Activities not outsourced are core

3. Protection of intellectual property

4. Company policy/philosophy

5. Inadequate business case

6. Concern-dependency on supplier

7. Concern-labour/community reaction

8. Loss of critical capability

9. Difficulty reversing decision later

10. Lack of supplier base

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