The outsourcing industry is rapidly growing in Saudi Arabia and has fundamentally changed how businesses operate. Companies prefer to outsource non-core tasks and focus on their core competencies. This approach is useful and helps companies grow, however, to get the most out of outsourcing, companies need to consider how it can be used strategically rather than tactically.
Tactical outsourcing is problem solving based, for example, a lack of capacity in the finance department may force a company to outsource their tax and zakat reporting to fill the capacity gap. On the other hand, strategic outsourcing focuses on aligning outsourcing with the company’s long term objectives. It assists companies in achieving a competitive advantage and repositioning themselves in the market. It also allows companies to spend more time on core activities that are crucial to success and that can’t be outsourced.