Outsourcing

Outsourcing is an arrangement where one organisation provides services for another that could also be, or usually have been, provided using internal resources. Outsourcing is a trend that is widespread in business functions such as finance, information technology, human resources, legal, tax and company secretarial services. These include better use of internal resources, access to specific expertise and reduced costs. The decision to outsource is not without risks − these include hidden costs and lack of company and outsourcing organisational fit. There are advantages to outsourcing and these must be measured against risks and governance issues. While the principles remain unchanged the challenges are multifold with artificial intelligence, automation, master data management, skill shortages, hybrid working and large language models changing how and indeed where business activities take place.

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