i) Emphasis on core competences: An organization that outsources some of its activities, especially non-core ones will be able to emphasize its core competences on core functions by not concentrating its efforts on routine areas (that can be outsourced).

ii) Accessing top expertise: By outsourcing, the firm will have the benefit of having access to top talents and state of the art technology without having to own it.

iii) Growth: The firm can grow more rapidly because it will improve efficient resource allocation within the firm.

iv) Risk sharing: By outsourcing certain parts of the business, the company will be able to shift certain responsibilities to the outsourced vendor and with their expertise, they will be able to plan risk mitigating factors better.

v) Reduction in recruitment costs: Outsourcing saves the firm from recruiting people in-house, hence recruitment and operational costs can be minimized.

vi) Increased efficiency: When a company outsources some of its activities, it is able to share the work load of its employees with the outsourced company. This will facilitate the development of internal staff and also help them to operate efficiently.

vii) Continuous operations: When certain operations are outsourced, it enables the firm to have continuous operation of the business especially where the outsourced company is operating in a different time zone.

viii) Flexibility: Outsourcing certain activities of the firm can lead to financial flexibility especially during periods of uncertainly in demand.

ix) Cost saving: Outsourcing some of the firm’s activities to companies in countries with lower labour cost helps the company to save costs and gain competitive advantage.                                                                                                                        (Any 5)