Capabilities > Benefits of Outsourcing > Make Capital Funds Available

There is tremendous competition within most organizations for capital funds. Deciding where to invest these funds is one of the most important decisions that senior management makes. It is often hard to justify non-core capital investments when areas
more directly related to producing a product or providing a service compete for the same money.

Outsourcing can reduce the need to invest capital funds in
non-core business functions. Instead of acquiring the resources through capital expenditures, they are contracted for on an "as used" operational expense basis. Outsourcing can also improve certain financial measurements of the firm by eliminating the
need to show return on equity from capital investments in
non-core areas.

Source:
Survey of Current and Potential Outsourcing End-Users
The Outsourcing Institute Membership, 1998