Outsourcing is often thought of as a way to reduce costs, particularly if the outsourcing destination is in a developing economy with low living costs such as the Philippines, South Africa or Fiji. However there are many other benefits to outsourcing – for example, the “HR headache” is passed on to the outsourcer and does not present a distraction and burden to the company. Outsourcing provides companies with greater bandwidth to contract and expand based on planned or unplanned events. It also reduces the liability of fixed employee costs, lowering the company’s risk profile. Not to mention that outsourcing is an excellent strategy if the process is not a core competency of the company, and the outsourcer can bring expertise to the table which is not resident inhouse.