Outsourcing a Vendor

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Advantages of Outsourcing a Vendor

It allows this same outside vendor the opportunity to play an impromptu “midlevel management role where they can assess, and evaluate the productivity and necessity of each employee.

Another advantage to outsource vendors is that you have the opportunity to work with their first-level employees by hiring those from the organization.

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Advantages to the Organization

One advantage to the organization that engages in outsourcing is that it can save money.

Obtain expertise Avoid management problems Free management time Risk reduction

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Most outsourcing agreements include service level agreements (SLA’s) which require a minimum level of performance from the outsourcing vendor for the customer.

Often these agreements also include financial penalties if the vendor does not perform well enough

Outsourcing Agreements

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It is possible for an outsource vendor to achieve economies of scale that are not possible for the hiring organization

The outsource vendor services multiple companies like the hiring organization and thus is able to reach economies of scale much more quickly and easily due to the sheer volume of business they are conducting in their specific field.

Outsource Vendor Benefits

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Outsourcing is a great way to streamline a companies business.

It also is great for enhancing the peripheral factors that attract employees to a company such as the fact that the company has a great cafeteria (which they outsourced to a premier catering company).

Outsource Vendor Benefits

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