Why does company choose outsourcing employees?

Agreed with all correspondents. Cutting costs is the #1 answer....

I agree with the answer added by:

1. Lower operational and labor costs.
2. To continue focusing on their core business processes.
3. To enable companies to tap in to and leverage a global knowledge base, having access to world class capabilities
4. Freeing up internal resources.
5. Many times stranded with internal resource crunches, many world class enterprises outsource to gain access to resources not available internally
6. Outsourcing, many a time is undertaken to save costs and provide a buffer capital fund to companies that could be leveraged in a manner that best profits the company
7. By delegating responsibilities to external agencies companies can wash their hands off functions that are difficult to manage and control while still realizing their benefits
8. Outsourcing and especially offshoring helps companies mitigate risk and is also among the primary reasons embarked upon
9. Outsourcing also enables companies to realize the benefits of re-engineering
10. Some companies also outsource to help them expand and gain access to new market areas, by taking the point of production or service delivery closer to their end users

1. Avoid benefits.

2. Avoid risks.

3. Reduce cost.

4. Improve employee productivity.

5. Trained up staff.

Mainly it save TIME n COST like recruitment n hiring cost, Training cost, save variety of benefits, save legal procedures cost, Insurance cost etc. as per my experience risk factor exist because employee use company space n equipments.

1) speedy work and time saving 

2)skilled and experienced staff 

3)reduce cost like hiring cost,training cost 

4)focus on core work

Its business strategy for best quality to limited time even if you need more expertise or expectation from employee, simply escalate to contractor and they will provide right candidates. As per business strategy no more hard feeling and you can remove those members after your requirement. Outsourcing will be very good for support and small project even if big project there have conditions to absorb resources after a year.