Improve Core Business Focus
Outsourcing enables a company to focus critical energy and resources on core business functions (e.g., engineering, manufacturing) and mission-critical projects (e.g., new product development, market expansion) while leaving operational details to outside experts. Companies can dillute precious resources and decrease flexibility and agility by devoting too much attention to areas that do not contribute to the bottom line. By concentrating on strategic business objectives and not the varied support functions required to achieve those goals, a company can better concentrate its talents and efforts on activities that will improve its abilities to compete effectively and grow.

Access Specialized Expertise and Resources
Outsourcing firms provide access to specialized tools, techniques, technologies, and knowledge that can only be maintained by a company that has focused its learning and business on providing top rate services in a particular area. Often, a company will need to avail itself of highly specialized talent in order to accomplish a particular project or objective that is "terminal". That is, once the project is accomplished, the competencies and tools needed to achieve it are no longer needed and a company can shift its focus to maintaining or supporting what was originally accomplished. Outsourcing firms can provide specialized talent and resources at a fraction the cost of having to purchase and/or develop them in-house.

Augment or Enhance Resources
Internal company resources can be outstripped for a variety of reasons including rapid growth, expansion of operations, hiring difficulties, unusually large or new types of projects, cash flow problems, and reorganization efforts. Outsourcing can provide rapid access to needed resources that are not available internally.

Economies of Scale
Because outsourcing providers can spread the benefits and costs of technology, hiring and training expenditures across a number of clients and over a period of time, they are able to do so with economies of scale not available to a company trying to accomplish any one of the same objectives on its own.

Risk Sharing
Because business conditions change so quickly, there are tremendous risks involved in making most technology investment decisions. Outsourcing firms make investments on behalf of many clients, sharing the risks of those investments among a broader base, and often accepting any risks otherwise born by clients.  Companies that outsource become more flexible, more agile, and better able to adapt to changing conditions -- improving their ability to compete.

Cash Infusion
By selling assets (e.g., desktop computers, large systems) to an outsource provider, a company can generate considerable cash over time or in a lump sum.

Reduce Capital Expenditures
Return on Capital Employed and Return on Equity can be effective ways of measuring a company's efficiency. Outsourcing the provision of capital items (e.g., computer systems) as contracted expenses reduces the capital required to provide non-core and non-revenue-producing services and eliminates many of the up-front investments required to provide these services in-house.