1. Outsourcing a Vendor
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2. 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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3. 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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4.  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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5.  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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6. 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
2013 IO Marketing – Proprietary and Confidential

7. 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
2013 IO Marketing – Proprietary and Confidential