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Outsourcing Advisory Firms Guide

In today’s fast-paced business world, companies are constantly looking for ways to streamline their operations and cut costs. One popular solution is outsourcing, which involves hiring external companies to handle certain business functions. However, navigating the world of outsourcing can be complex and overwhelming. That’s where outsourcing advisory firms come in. In this article, we’ll explore the benefits of outs

What is an Outsourcing Advisory Firm?

Before we dive into the benefits, let’s first define what an outsourcing advisory firm is. These firms provide strategic guidance and support to businesses looking to outsource certain functions.

They help companies identify which processes can be outsourced, the right outsourcing solutions for their requirements, select the right service providers and manage the outsourcing relationship. Their role is to stay updated on the latest Outsourcing trends and act as a consultant for businesses looking to outsource.

Expertise and Experience


by Austin Distel (

In recent times, there has been a growing trend in the popularity of outsourcing advisory companies. This is because businesses have come to understand the multitude of advantages these firms offer.

Outsourcing advisory companies assist businesses with outsourcing, providing expertise and guidance throughout the process. This article explores the benefits and importance of their services.

One way to reduce labor costs is by outsourcing non-core functions to external service providers. By doing so, companies can focus their internal resources on their core competencies and eliminate the need to hire additional staff or provide training for non-essential tasks.

This not only saves on salary expenses but also reduces the amount of time and effort spent on managing non-core functions. Furthermore, outsourcing allows businesses to take advantage of lower labor costs in other regions or countries where wages may be more competitive.

Companies can cut costs and avoid upfront investments by using cloud services or SaaS. Instead of buying expensive servers and IT equipment, businesses can rely on third-party providers.

This reduces capital investments, and maintenance costs, and allows for scalable infrastructure based on specific needs, saving businesses money.

Businesses can save money by leveraging economies of scale and reducing overhead costs. This can be achieved through resource pooling, such as sharing office spaces or co-locating with other businesses. By doing so, companies can achieve cost-sharing and negotiate better rates for services like utilities, maintenance, and security.

Furthermore, companies can utilize group purchasing power to obtain discounts from suppliers or wholesalers as a result of increased purchasing quantities. This reduces both direct and indirect expenses associated with facility administration, maintenance, and management.

Implementing cost-saving measures can reduce expenses, allowing businesses to allocate resources more efficiently. This enhances financial stability and enables reinvestment in critical areas like research, marketing, and employee development, driving growth and competitive positioning.

To increase efficiency, organizations must allocate resources strategically, freeing up attention for core activities to maximize productivity and achieve optimal results.

Focus on Core Competencies

Outsourcing firms can help businesses free up resources by handling non-core functions. Their expertise allows them to efficiently manage tasks that are not central to the organization, allowing businesses to focus on their core competencies.

Outsourcing non-core functions improves business performance by freeing up internal resources and tapping into specialized skills. This boosts competitiveness and allows for innovation and improvement, enhancing overall operations and staying ahead in the market.

Strategic Outsourcing

Outsourcing advisory firms can also help businesses with strategic outsourcing. This involves identifying which processes are critical to the business and should be kept in-house, and which can be outsourced to external service providers. Firms that offer strategic outsourcing advice include EY, KPMG and the Outsourcing Center

By strategically outsourcing certain functions, businesses can focus on their core competencies and improve overall performance. Outsourcing advisory firms can provide valuable insights and help businesses make informed decisions when it comes to strategic outsourcing.

Outsourcing advisory firms offer contract and pricing expertise, helping businesses negotiate favorable contracts with service providers and ensuring fair pricing aligned with industry standards. Engaging experienced firms can avoid costly mistakes and achieve better outsourcing terms.

Advisory Services

Advisory services

by Clark Tibbs (

In addition to providing guidance on outsourcing, these firms also offer a range of advisory services ranging from RPA to cost takeout. This includes conducting market research for best practices, analyzing business processes, and developing outsourcing strategies.

They can also provide ongoing support and monitoring to ensure that the outsourcing relationship is successful. By utilizing these advisory services, businesses can make informed decisions and achieve their outsourcing goals.


Outsourcing advisory firms, with their comprehensive range of advantages, provide an array of invaluable benefits for businesses. These benefits include not only more efficient operations, but also substantial cost savings, effective risk mitigation, and the incredible opportunity to access talent on a global scale.

As a result, when your company partners with an outsourcing advisory company, it allows you to concentrate on improving and perfecting your main strengths, leading to increased overall effectiveness.

Furthermore, such a partnership can bestow upon your business a significant competitive advantage within the market.

Whether you are new to considering outsourcing or looking to enhance your existing outsourcing approach, enlisting the guidance of an advisory firm is guaranteed to transform the direction of your business.  More ideas can be found at the Wikipedia site. 

Questions you could ask?

Question: What is an outsourcing consultant?

Answer: An outsourcing consultant is a professional who advises businesses on how to effectively delegate certain non-core functions or processes of their operations to third-party vendors, in order to improve efficiency, reduce costs, and focus on core competencies.

Question: Why would a company hire an outsourcing consultant?

Answer: Companies might hire an outsourcing consultant for several reasons, including to gain expertise in the outsourcing process, identify potential partners, manage risks, negotiate contracts, and ensure a smooth transition of services to the third-party provider.


Question: What are the key functions of an outsourcing consultant?

Answer: The key functions of an outsourcing consultant include evaluating a company’s needs, researching and recommending potential vendors, assisting with contract negotiations, overseeing the transition process, and monitoring the performance of the outsourcing relationship.

Question: How does an outsourcing consultant differ from an in-house manager?

Answer: While both focus on managing processes, an outsourcing consultant specializes in the specific domain of identifying, establishing, and managing relationships with third-party vendors. In-house managers typically oversee daily operations and might not have the specialized expertise required for effective outsourcing.

Question: How can a company ensure they hire a competent outsourcing consultant?

Answer: Companies should seek consultants with a proven track record, ask for references, and review case studies of their past work. A few that do this work include, and

About the Author: Ben Trowbridge is an accomplished Outsourcing Consultant with extensive experience in outsourcing and managed services. As a former EY Partner and CEO of Alsbridge, he built successful practices in Transformational Outsourcing, Managed services provider, strategic sourcing, BPO, Cybersecurity Managed Services, and IT Outsourcing. Throughout his career, Ben has advised a broad range of clients on outsourcing and global business services strategy and transactions. As the current CEO of the Outsourcing Center, he provides invaluable insights and guidance to buyers and managed services executives. Contact him at [email protected].

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