I am convinced that a lot of of you have thought at least once a few times about outsourcing. Could you introduce it in your enterprise? What are the advantages?Outsourcing allows to transfer some activities to a third party with the result that that the enterprise is able to focus on its key business. Below is a very plain example that would allow to see how this functions: company that operates in the field of event management and conferences does not have to have the IT department. IT outsourcing firm would not only be sufficient, but presumably even preferred in such case. The central target is cost reduction – it is less expensive to outsource IT specialists, than to have the IT department in the organization. However, we should keep in mind that it is a very simplified illustration.
The huge majority of the difficulties and risks resulting from outsourcing are combined with poor election of third party. Without a doubt, the amount of gains of outsourcing surpass the number of drawbacks. First of all, outsourcing can cut down labor costs. The important aspect is if the company uses the services of the firm placed in the same country or abroad. This is exceptionally trendy in the IT sector – many famous companies have “their” IT departments outsourced and placed in India, where there are many educated people but cheaper cost labor at the same time. Great article:
Second, outsourcing allows you to focus on the key activities of your company.For example, if the improvement of updated software is outsourced, we can focus on key areas, like acquiring new clients.
There are also many smaller advantages such as possessing an access to a number of specialists that we could not afford to hire otherwise as our employee. At the same time, this allows to enhance the quality of services.
At the end it is worth adding that the word “outsourcing” has become an umbrella term. Not everything which is transferred to a third party can be considered as outsourced. For example – service known as „managed services”.
Although it can be often perceived as some kind of outsourcing, this term emphasises business purpose, that goes far beyond the cost savings. Therefore, it is worth to recall, that even though outsourcing is a very extensive concept, not everything could be part of this “category”.