Well, obviously, cost efficiency plays a crucial role, especially when you're only launching your startup. Moreover, when outsourcing, you hire highly skilled people who specialize exclusively on the type of work they perform, thus, the efficiency of their work is increased. Outsourcing helps you avoid employee turnover that may cause uncertainty in your business. Finally, it's crucial for companies delivering seasonal or cyclical services, so they can hire additional workforce only when needed.
Outsourcing today has turned into a multi billion dollar industry. And as per my experience, there are some relevant reasons behind this (of-course, apart than the cost factor including overhead cost, infrastructure cost and other demands of employees like increments, health benefits, etc.):
How outsourcing can improve business performance
1. Helps companies focus on business critical tasks and improve employee output.
2. Streamlines business operations.
3. Improves quality and reliability of services.
4. Saves headcount.
5. Supports growth strategies.
6. Frees up funds for core business activities.
7. Ensures predictable costs.