There are many reasons why a company may choose to outsource certain business functions. Few of most reasons include:

1) Lower operational and labor costs are among the primary reasons why companies choose to outsource.

2) When properly executed it has a defining impact on a company’s revenue recognition and can deliver significant savings.

3) Improving company focus on their core business processes.

4) Gaining access to world-class capabilities.

5) Freeing up internal resources that could be put in to effective use for other purposes is also one of the primary benefits realized when companies outsource or offshore.

6) Streamlining or increasing efficiency for time-consuming functions.

7) Maximizing use of external resources.

8) Sharing risks with a partner company.

However these reasons aren’t sufficient to implement a doing well outsourcing projects. In fact, companies must ensure that they consider all of the components and are able to meet the requirements for successful outsourcing.