According to the research firm of Coopers & Lybrand, 81%
of American companies use outside sources to perform some
function. This compares to 50% five years ago, and the trend
of turning to the outside for capabilities continues to grow.
Companies have come to understand that outsourcing is a viable
way to improve their core business, while reducing expenses,
personnel and overhead. Simply stated, contracting out tasks
that are not part of a company's core competency can free
up cash for other, higher return investments. Also, managers
can focus on issues that are key to growing their business
in product development rather than getting caught up in the
day-to-day labors of manufacturing. Finally, it is the ability
of the contract supplier to respond to the peaks and valleys
typical in the manufacturing process that makes outsourcing
so rewarding for a company.
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