What is outsourcing?

Internet users often come across terms that they don't always understand. A person has to spend time searching for clear definitions.
Every year there are more and more borrowings from other languages, mainly English. One of these borrowings is the term "outsourcing".

Outsourcing is mainly used in business, both in real and online versions.
Any enterprise, whether small or large, is characterized by the presence of the main and related business processes that require competent management.
This is accounting, transportation, and solving staff problems.

All this falls under the concept of "outsourcing services".

Thus, outsourcing is nothing more than the transfer of specific related functions to other services, called outsourcers. The service is performed on the basis of a contract.
This approach brings tangible benefits, because specialists of a narrow profile are able to do their work much better.

An Example of effective use of outsourcing can serve as an ordinary online store.
Such an enterprise needs, of course, a high-quality website in order to attract as many customers as possible.
In addition, you need to constantly communicate with customers.
Naturally, such specialists as logisticians and accountants will also be required.

This is where outsourcing comes in.

An Example of using outsourcing is the promotion of your web resources. It makes sense to entrust this matter to a specialized company, instructing the appropriate specialists to install, configure and maintain the software.

Large corporations outsource not only accounting, but also sales, legal, human resources, and security functions.

Outsourcers do not provide services on a one-time basis, as a regular service, but for a long time. After the agreement expires, it can be extended.

Division of outsourcing into types:

  1. Production. Outsourcers are assigned the production of products (all or part of them).
  2. "IT". Programming functions, hosting, websites, and software installation and maintenance are transferred.
  3. Business process Outsourcing: accounting, Finance, logistics, HR, marketing.
  4. Serious analysis of the business processes.

Advantages, disadvantages and prospects of outsourcing

Before transferring some functions to outsourcers, it is wise to carefully calculate all the pros and cons. It is extremely important to determine your economic benefits from outsourcing.

The advantages of using outsourcing include the following points:

  • it is often much more expensive to maintain your own Department to perform the corresponding duties. Outsourcing services are sometimes more profitable than maintaining permanent employees with high salaries, because the volume and schedule of outsourcing services can be adjusted.
  • outsourcing will reduce and optimize costs;
  • structuring work with staff. The risk of force majeure situations is reduced.

The disadvantages of using outsourcing include:

  • disputes may arise over contractual obligations;
  • confidential information may be leaked;
  • risk of financial losses if the need to use outsourcers was exaggerated;
  • poor quality services when contacting an inexperienced company.

In order to minimize such risks, it is necessary to conduct serious analytical work.

In conclusion, it can be noted that outsourcing has firmly won its position around the world and has proven its effectiveness under the condition of reasonable and thoughtful use.

13 May 2020

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