Due to different resources, laws, and regulations certain companies are able to provide the same service for a much lower price. For example, the cost of labor in third world countries is just a fraction of what it would cost in a first world country.
If you are looking to increase profits from your services then it may make sense to outsource. While you will not have as much control over the process if it ends up with the same service then it can make a lot more money. Also, this alleviates some of the management work that your company has to do. Now that job is placed on someone else.
Another advantage to outsourcing is that it can free up some valuable space. As a company grows, the building does not, so moving some of the jobs out of the building can be truly beneficial. There also may be certain parts of the company that just have not been as productive as they should be. If they are holding the company back then outsourcing this job can bring the company back to pace. Outsourcing can also mean bringing in people with unique sets of skills that are needed to complete a certain project. Outsourcing like this can not only save money but it can also improve the end product as well.
Outsourcing can save the company a lot of money for many different reasons. Whether it is cost of labor, space issues, or lack of productivity, outsourcing can fix it.