Outsourcing business functions is a relatively new concept, which has become increasingly popular in recent years. It involves allowing an external company to manage certain aspects of their operations. The main advantages of outsourcing are cost savings, access to specialized skills and expertise, and improved efficiency. At the same time, there are potential risks associated with outsourcing as well. This article will discuss the pros and cons of outsourcing business functions.

The primary advantage of outsourcing is cost savings. Companies can save money by delegating tasks such as customer service or accounting to specialized third parties who charge less than they would have had they hired internal staff to do the job themselves (Hofmann & Winecoff 2019). Additionally, companies may be able to save on overhead costs since they don’t need to purchase equipment or software for the outsourced task(s). In addition, outsourcing allows businesses to focus on core competencies rather than spending resources on non-important activities (Drejer et al., 2016).