Many companies don't have the computer infrastructure to compete in the new global environment and find the best solution is to outsource their entire network. Outsourcing can reduce costs tremendously in many other areas besides information systems and networks. Companies have turned to temporary workers in all areas from clerical to legal professionals because they get the expertise they need without putting permanent employees on their payroll and funding their benefit packages. Companies that compete in the global market find it necessary to outsource to reach the benchmarks in their industries as stated earlier. Without companies outsourcing their networks or telecommunications, they could never compete globally.
Companies outsource with many local suppliers for other needs.
General Motors may be a large global car company, but each plant uses local suppliers for many different needs. Like many other companies, General Motors outsources their janitorial services, security guards, construction needs and also some engineering needs within the production areas. Healthcare companies outsource many of their software needs. Almost all industries outsource for clerical workers presently because unemployment is so low and it can be more cost effective to use contract workers than to put them on their own payroll. It also is not a good idea to outsource work that is part of the company's core competencies.