Outsourcing allows firms to focus, expert claims

Written by Louise Tate

Making use of outsourcing can allow companies to concentrate on their core activities, it has been claimed.

John Grange, an adviser at Business Link, said the current economic climate makes it necessary for firms to focus on activities which will create value.

He added: "A lot of other activities that are essential and important for their business, I personally think, are absolutely right for outsourcing."

The expert said that the advantage of doing this is that it can prove to be a cost-effective strategy, because businesses can choose when it is used.

In addition, Mr Grange suggested that outsourcing some operations allows companies to avoid becoming distracted by aspects of the business which do not directly add value.

Earlier this month, industry analyst IDC claimed that the need for firms to reduce costs and optimise headcounts in the recession is causing an increase in the uptake of IT outsourcing services.