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Cost Benefit Analysis

The Cost Benefit Analysis is a technique for determining the feasibility and profitability of the Outsourcing by quantifying its costs and benefits. A company must ensure that the benefits gained from employing outsourcing services are greater than the costs involved in obtaining the same. Such a decision should include both qualitative and quantitative measures, and must be fully documented. Again, the outsourcing may prove to be more costly or require more time, but ultimately may still be the best solution to meet the growth requirements and economic progress of the company.

The Internet media and high-speed Internet connections facilitate and make the outsourcing benefits available throughout the world. In general, domestic companies utilizing offshore outsourcing are not only trying to save money for being more price-competitive against each other, but also to enable themselves to compete with businesses in other countries.

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