Outsourcing is a perfect illustration of the revenue/profit per employee analysis. If a particular function your company is doing is low-value-added (i.e it can

Outsourcing is a perfect illustration of the revenue/profit per employee analysis. If a particular function your company is doing is low-value-added (i.e it can be done by companies with lower revenue per employee than yours), you should consider outsourcing that function. Employees are the most valuable resource of most companies, and efficiently utilizing this valuable resource is the most important function of management. Managerial complexity is a super-linear function of headcount, and complexity kills productivity.