Outsourcing
About Outsourcing and when to Implement it?
When we talk about outsourcing, commonly referred to hire another company to perform certain tasks, tasks that make our business but not the core business.
Indeed, compared to the high demand of quality demanded by globalization, no company can “do everything” in a totally efficient.
Thus, a large number of activities or processes that have nothing to do with the core business could be done by others in a more efficient and economical.
Therefore, many companies outsource logistics, administrative tasks (payroll or billing), the selection and training of staff, various production processes (such as maintaining physical assets), marketing activities (such as advertising or research market), and a wide range of general services (security, cleaning and catering).
A well done outsourcing has great potential to improve outcomes. Performed poorly, however, can interfere with operations.
So, here are some key factors to make good decisions for outsourcing:
The different types of outsourcing
Currently, there are three ways to outsource a service or process, “in company”, “near-shore and off shore.”
Mode “in company” is to host within the company, a team that will perform the service contracted to a third party. This is the common method for cleaning and security.
Mode “near shore” is derived performing a particular task to another company, that make in your own office.
The simplest case is an accounting firm that performs billing and payroll for others.
Finally, thanks to the extraordinary development of communications, today it is possible to derive business services in another country. This is what is known as outsourcing and off-shore.
In the computer area, it is common that companies Argentine, Brazilian, Mexican, Irish and Indian companies providing services to American and European.
When to outsource?
A company that chooses to manage all their processes internally, you need to allocate ample resources to specialized staff, buy software, install a sector with desks and other furniture, train their people and, where appropriate, apply different strategies of motivation and loyalty .
So, inevitably face a host of complexities and the difficulty of getting staff and cost of training to the existing regulations or standards that aims to fulfill the organization.
The risk of internal management, as well as high costs, is to get a result that is not the quality expected.
Therefore, such activities result in a firm specializing in the task can reduce costs, get an updated and efficient service and free up resources to devote to core business.
Therefore, it should outsource a service when searching:
1) Improving the efficiency results
2) Free up resources for reallocation to core business tasks
3) Put the focus on core business
However, there is no doubt that outsourcing has enormous potential to increase efficiency while allowing the company to focus on what you do best.
However, it is also true that an outsourcing strategy, if not addressed properly, can be a source of serious risks.