Saving Money Through Outsourcing

Outsourcing means retaining the services from somebody outside of an organization to perform a task that would normally be done by somebody within an organization.
Saving money has always been one of the drivers for considering outsourcing.
If saving money is used as the only driver, any outsourcing project will fail badly.
There has to be a strategic motivation behind outsourcing in addition to save money, such as...

• Increasing efficiencies.
  For example: Outsourcing customer support can provide the opportunity to increase customer service performance by offering extended support hours, adding a potential for increasing revenue streams through up-selling and/or cross selling.
  
• Freeing up internal staff to concentrate more on the core competencies of an organization

In theory almost anything can be outsourced, but it not always makes sense.
Outsourcing makes sense for non-core processes of a business that can easily be given away, but at the same time controlled and monitored in an efficient manner.
Outsourcing core business processes an organization relies on heavily does not necessarily make sense.
It may also make sense, after a thorough cost/benefit analysis, to keep any processes where the appropriate knowledge and functions are currently present inhouse.
Especially if these already existing resources could not be used in another function to increase the organization's overall efficiencies.
For any outsourcing project it is imperative that all parties communicate their needs and requirements at all times.
Outsourcing does not mean handing of a task, process or business function to a third party and then let leave them with it for all eternity without any follow up interaction.
Outsourcing means interaction and communication between all parties at all times, whether it is during the planning and setup stage or whether it is an ongoing interaction after going-live.