Outsourcing can make sense when services can be obtained better, faster or more cheaply. But the long-term consequences must also inform the decision. A company becomes dependent on third parties and transfers know-how outside the business. What initially seems cheaper and better can soon become more expensive and less effective. From a valuation perspective, outsourcing involves balancing short-term benefits against long-term risks.
Allianz now intends to outsource much of its tax department, a potentially risky step. I discuss this in my latest Finance Magazin blog post:
Why Allianz May Come to Regret Outsourcing Its Tax Department.