Making cost savings is one of the many reasons why companies choose to enjoy the benefits of outsourcing parts of their operation, a business expert has claimed.

According to the International Association of Outsourcing Professionals (IAOP), businesses can use outsourcing to reduce the risk of delivering services via experts in certain fields and to convert fixed costs to a variable level.

Jag Dalal, IAOP's managing director, says: 'You can also take advantage of 'time dimension' - offshoring to a different time zone creates an ability to extend the day - or 'quality dimension' - utilising a provider who is more adept at using certain tools than you are.'

He adds that the credit crunch has had little effect on outsourcing as a process.

However, some financial institutions see it as a solution to addressing their liquidity and operational margins problems brought on by the economic turmoil.

According to the IAOP, the upcoming 2008 Outsourcing World Summit in Orlando, Florida will draw hundreds of outsourcing professionals from around the globe representing all industry segments.