Imagine Diageo getting ready for a major media ad campaign. They are recruiting casts for the footage. Several auditions are being held. Meetings are being held on budgetary management. Locations are being visited, and then the scripts must be written. Now, slow down a bit! Diageo is not in the business of staging media ad campaign, but they need the ad campaign to drive their sales and remain branded in the mind of the consumers.

Diageo needs to outsource the media ad campaigns in order to focus on their core business process, which is production of liquor.

You need to constantly appraise your business processes and eliminate support processes that constitute major projects and might distract you from your core business processes. As a rule of thumb, such support processes must be outsourced.

The process of outsourcing delivers the benefits that come with specialisation and the theory of comparative advantage. Focusing on your core business and outsourcing the support processes, when managed effectively, increase your company’s performance and revenue.

Another case for outsourcing is in the area of ‘temporary processes.’ If a business process recurs only once in a while, there is no need to purchase equipment and hire staff for such process, when you can always outsource. This way, you will avoid the cost of recruiting and keeping personnel and other operational resources that function only occasionally.

By outsourcing, you transfer the risks of a process, totally or partially, from your company to the outsourced firm. So who says you cannot eat your cake and have it? At least not when you outsource your business processes.

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http://www.excellaid.com.ng/blog/when-should-you-outsource