Outsourcing as a strategic business
tool has been around for well over a decade
and has become a widely accepted, viable
strategic management tool. It has been used
in all industry and government segments globally
as a strategic move to enable organizations to concentrate
on running their business.
Outsourcing allows organizations to focus on core competencies, leverage
business critical infrastructure, convert fixed costs into variable costs,
facilitate best-of-breed implementations and redirect resources for core competency development through reduced costs.
Outsourcing also brings predictability and reliability to the management of Information Technology. It has become one of the most powerful management tools to meet several critical success needs in today's global economy. These include speed to market, global presence, overcoming skill shortages, and coping with modern business trends like the rise of e-business, deregulation and privatization.