Capabilities > Benefits of Outsourcing > Reduce/Control Operating Costs

Companies that try to do everything themselves may incur vastly higher research, development, marketing and development expenses, all of which are passed on to the customer. An outside provider's lower cost structure, which may be the result of a greater economy of scale or other advantage based on specialization, reduces a company's operating cost and increases its competitive advantage.

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