Diane Kaern possesses an extensive background in global business operations and financial management including cost reduction and management. In 2008, Diane Kaern was awarded an Outstanding Achievement Award while working as a sales operations manager at Hewlett-Packard Company, a multinational company that successfully began outsourcing its PC manufacturing in the 1990s.

1. THREE KEY DRIVERS OF
OUTSOURCING
Diane Kaern

2. INTRODUCTION
• Diane Kaern possesses an extensive background in global business
operations and financial management including cost reduction and
management. In 2008, Diane Kaern was awarded an Outstanding
Achievement Award while working as a sales operations manager at
Hewlett-Packard Company, a multinational company that successfully
began outsourcing its PC manufacturing in the 1990s.
Outsourcing is a business arrangement in which one company (the client)
hires another company (the outsource provider) to operate a specific
function on its behalf. Outsourcing is driven primarily by these factors:
1. Cost Savings
The operating cost of producing goods increases when a business starts to
pick up and receive more orders. Companies utilize outsourcing to take
advantage of lower manufacturing costs in other markets and maximize
profits.

3. OUTSOURCING
• 2. Focus on Core Competencies
Outsourcing gives a company the resources and flexibility to
focus on developing its core competencies by outsourcing many
functions needed for effective business management that do not
necessarily provide added value. For instance, a company that
wants to hone their expertise in market research and product
development may outsource administrative and finance functions
to another company.
3. Access to the Skills of Outsource Providers
Access to skills in specific domains is another key driver of
outsourcing. A company that requires a competitive skill set that
it currently lacks will hire outsource providers to fill in the gap.