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Need for Tendering (Outsourcing)

The principle behind outsourcing is to concentrate on one’s core business activity and employ specialists for non core activities who could do a better job and also economically. In recent times of super specialisation, more companies are out-sourcing activities that are not related to its core business and in this context the process assumes even more importance.

On the other hand if non-core activities were not outsourced and were carried out in-house, a company would end up committing resources, that would either be rendered redundant after the Works are complete or not be used efficiently thereby imposing unnecessary financial and administrative burden on the Client. Whereas a Contractor who specialises in an activity would employ these resources more efficiently and in a more judicious manner.

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