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The traditional business requirement for outsourcing is straight forward. By passing on this no core function to a third-party provider will spread costs across a huge client base. Doing so companies can cut their expenses without having to loose the benefits and goals. They can gain access to disparate solutions and the latest call center capabilities without having to own and operate them. In many cases, they can provide a higher level of service to their employees.
Cost Reduction Benefits for Company's Outsourcing
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Demonstrated cost savings. |
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Reduced manufacturing overhead cost. |
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Increased profitability. |
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Free production price quotations. |
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Competitive pricing at a fixed per piece rate. |
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Eliminates expenses related to employee overtime, hiring and layoffs. |
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Eliminates training expenses and reduces management responsibility. |
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Reduces Human Resource new employee expenses, related to |
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Advertising, interviewing, hiring and orientation. |
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Lowers your payroll taxes related to FICA, unemployment and workers compensation expenses. |
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Reduces your employee benefits cost. |
Production Benefits for Company’s Outsourcing
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Ability to meet peak production requirements without hiring additional employees. |
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Satisfaction Guarantee, completion to your specifications. |
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Increased utilization of your own direct labor and management employees. |
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Instant access to a workforce of 275 people with 30,000 square feet of available production space. |
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Utilization of our Quality Assurance Program |
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Reduces your capital equipment expenses and machine maintenance cost. |
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Minimize your start up cost. |
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Our facilities are fully insured |
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Material security |
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Creative problem solving |
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Labor, management and employee benefit costs are saved. |
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Employees are free to focus their efforts on assisting patients. |
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Investments in hardware and software become obsolete. |
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Medical resources are more strategically utilized. |
What's more, companies' outsourcing strategies are becoming increasingly selective. Total benefits outsourcing remains an option, but it's one that relatively few organizations adopt, according to a recent survey of 315 large and midsize companies conducted by Watson Wyatt. Nearly 60 percent of respondents reported that their organization uses a combination of internal and external resources to manage its defined-benefit pension plan. The proportion of companies that said they use a blended sourcing approach to administer their health and welfare benefits programs was even higher -- 86 percent.
Businesses with a few years blended sourcing experience under their belt are taking a fresh look at the market before deciding whether they want to stick with the status quo, take their current arrangement a step further, perhaps toward total benefits outsourcing, or bring some activities back in-house.
They're getting pickier about service providers, too. Many companies are insisting that their vendor tailor its offerings to meet their specific needs, and some are seeking an outsourcing partner that can add value to their benefits programs.
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