Describe the advantage of decentralisation
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Benefits of decentralization. The decentralized structure of outsourcing can offer both economic and non-economic benefits. Economic benefits can be reached because services or tasks are not controlled by a centralized control structure, but are guided by market factors to determine cost and levels of service.
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Advantages of decentralization include better, more timely decisions and increased motivation. Since it also eases the burden on top management, there is less management firefighting, or day-to-day problem solving. It also facilitates diversification and the development of junior management.
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