Why outsourcing is important

Cost cutting is one of the major targets in any procurement process because it is through such processes that companies can register high profits and meet set targets.
The beauty of the current business environment is there are quite a number of alternatives.
Thus you as a business leader or principle procurer, provides you a number of outsourcing opportunities that could deliver more satisfaction.
Beatrice Namuga a Kampala-based procurement expert says outsourcing can help a procuring entity in a number of ways “allowing for flexibility for the supply, especially on adjustable cost basis”.

“Outsourced providers have contingency plans and can facilitate useful risk management in the company,” she says.
However, she cautions that before outsourcing a supplier or contractor one should first assess the dangers and benefits to avoid disastrous outcomes.
“Out sourcing could lead to leaking of company secrets, which at times might turn out disastrous,” she warns.
However, Jacky Bagaya, who is also into procurement looks at outsourcing as a means of cutting costs as every organisation or business entity has its core objectives, thus “it is advisable that you contract other suppliers to take up the non-core activities of your business,” she says.

However, the two experts agree that you, as the business leader, must be able to direct the course of the outsourced business if you need better results.

Advantages of business outsourcing
One major advantage of outsourcing is efficient delivery, which leaves an open window for a contractor to question what has been delivered.
This can be achieved through a documented agreement of what is expected, which in the event that is not delivered you have room to petition.
Thus is important that everything is documented.