The Impact of Outsourcing on Company Performance

Abstract

Businesses nowadays tend to look for ways for them to maximize the utilization of their available resources to their full advantage and gain a competitive advantage. It is no wonder that they resorted to the growing approach of outsourcing. Outsourcing is an arrangement whereby the delivery of one or more internal processes or services of the company is done by third-party companies, commonly referred to as a vendor. This setup is used by different companies all across the globe to not just reduce costs, but also to have more focus, attention, and effort to their core business processes. The objectives of this study were to take a deep dive into the reasons that pushed companies to take the path of outsourcing and to assess the impact it has on the performance of the company. The sought objectives of the study were attained by reviewing the existing literature and with references to other researches. The researcher referred to secondary data and existing literature, which were analysed and synthesized. It was found that outsourcing is beneficial to the performance of the company as it allows companies to give more focus on their core, improve quality of service, lessen staff, streamline their business process, reduce costs, and lessen administrative burden. These findings will provide valuable insights that will be helpful in the decision-making process of businesses who are planning to take the path of outsourcing.