The following graph shows the relationship between company size and potential need for outsourcing. As a company reaches 1,000-10,000 employees, the potential need for outsourcing drops dramatically. In organizations of this size, sufficient resources can usually be found in-house to perform a function, as well as having resources to handle backup coverage.

At first glance, it seems counterintuitive for a company to outsource highly-visible or important services. Once you look at all the things a company must do to handle a service in-house (and keep it running continuously), it becomes more evident why many companies choose outsourcing versus operating a service in-house. If a service is provided in-house, a company must:

• Locate a qualified employee
• Train the employee
• Pay employee wages and benefits
• Provide the employee a physical workspace
• Provide the required technology items (computer, phone, Internet access, copier, fax machine, etc.)
• Pay telecommunications costs (phone line, inbound toll-free calls) 

Some services, for example Inbound Response Management, require continuous coverage and dedicated resource. This is required because responses are generated on a random basis by outside forces, rather than on an internal, controlled schedule. Services of this type would also require coverage during absences of the primary resource, such as:

• Scheduled vacations
• Unscheduled sick days
• Unscheduled Family leave
• Maternity leave

With outsourcing, the company must only:

• Locate a reliable and high-quality vendor
• Pay the vendor for the services provided

Click here to view a sample cost comparison of In-house versus Outsourcing for Inbound Response Management.