What is outsourcing and the outsourcing company?

Creating your own business is one of the major trends of our time, given the peculiar fashion on the reluctance of people to «work for the man.» In this regard, increasingly the question arises, what is outsourcing, because this concept is inextricably linked to the conduct of its Affairs.

Russian term formed using a simple transcription to English of word outsourcing. It, in turn, is the connection outer+source+using, which can be translated as using an external resource. How to understand this term?

what is outsourcing

What is outsourcing?

Outsourcing is quite a complex concept, which stands to disassemble with simple examples. Any business, conducted according to all laws and regulations, is composed of many processes. For example, managers must think about:

  • Accounting,
  • Transport and logistics
  • Installation of different software including the Internet and remote servers,
  • Direct the business process.

In addition, we have to do and a lot of other issues. This often leads to the fact that people are hesitant on opening a business, as it is associated with many problems. That is why, at the beginning of the last century, was established the principle of outsourcing.

It aims to help people who have specific expertise. For example, someone knows how to promote the site, but in order to his online store was successful, creating the call center, logistics, documents and books. Of course, seo-specialist is not ready to such.

Outsourcing is a way to only do what you really want and what is good. Everything else can be left to specialized companies. They will handle calls and delivery of goods will be engaged, and accounting will count.

outsourcing

Other cases of outsourcing

In addition to shifting huge amounts of responsibilities on the shoulders of specialists, outsourcing can occur in smaller ways. Often this is due to IT problems. The need for such workers is intermittent, relatively rare, and the rest of the time being in the state, they just idle.

If you hire such an employee using an outsourcing company, it will give several advantages:

  • You can be confident in the professionalism of the employee.
  • Rent was very reasonable.
  • The contract is made for the long term, that is, in contrast, for example, of freelance, will not need to re-search of the employee.

Another common situation is hiring cleaning companies the same method. Theoretically, these people will get their wages in the company, which came, but the task will be issued by the owner of the business.

So, what is outsourcing? Is the transfer to another organization and certain activities of the company, with the design contract. The main difference of the order of some services is that outsourcing involves a long professional relationship, smooth operation. Usually, contracts are issued for a period of not less than a year.

What is outsourcing company?

It is easy to guess that the outsourcing company is a company which does outsourcing. But what is offered by similar organizations? As a rule, among them are two key types:

  • Narrow specialization;
  • A wide range of services.

Most of the outsourcing companies prefer to specialize in certain jobs. This allows you to achieve greater professionalism in this matter. However, the situation when such organizations are gradually extending their activity, are not uncommon.

Since outsourcing stubbornly continues to gain popularity, gradually formed the main directions of such companies.

  • Accounting outsourcing, which usually are divided into complete and partial. The first option is associated with the whole process – from drawing up the original documents and before the issuance of the final statements. The second option is only submission of tax reports and accounting.
  • IT-services. Every year the demands in this field are steadily growing. Need more serious equipment, software, and people who are able to work. That is why IT outsourcing is also referred to as one of the most popular types of services.
  • Feedback is an important element in any business. It starts with call centers that simply allow people to place an order by phone, and to end support service, where customers can consult at any time. The issue of telemarketing, everyone decides differently, but in Russian-speaking countries, outsourcing is used most often.
  • Recruitment. Although many companies prefer to create their own HR departments, some are turning to outsourcing to specialists more carefully studied knowledge and skills of potential employees.
  • Another employee, which occurs only occasionally – is a lawyer. Thus, if such a need arose, it is important to get help from a qualified, experienced professional. With certainty this can only be found in outsourcing companies.
  • Transport logistics is an integral part of almost any business. Most large organizations arrange their own transportation, but if the firm is small, it is advantageous to combine shipments with other companies. In addition, transportation outsourcing and assists in warehousing and transport safety.
  • Sometimes companies manufacturing a particular product, prefer to shift part of the process to outsource.

Finally, the nutrition, cleaning and operation of buildings are very often solved through outsourcing companies.

distribution

Payment outsourcing

At first it may seem that the cost of outsourcing too high – it will be higher than usual salary of a staff member. However, it is important to consider some aspects. Such workers will not need to give any additional payments, such as:

  • Awards
  • Vacation pay and sick leave,
  • Taxes and insurance.

However, most of these companies drop the price, if the contract is long term. Often organizations require a fee upon execution of the order, but sometimes the cost is determined by time taken, or the fee is monthly/annual.

The second option is usually used by the outsourcing companies that handle the hiring of personnel, and the third is suitable for those who spend long work, and therefore can not determine the exact date of completion.

Occasionally there are situation when the speed of execution becomes a disadvantage for the business owner. Autsorsingovoe some companies prefer to charge you extra for fast completion of work.

The advantages and disadvantages of outsourcing

Now that it is clear, what is outsourcing, I think that whether the game is worth the candle. Like everything else in this world, these services have their advantages and disadvantages. To the first belong:

  • The lack of (or minimal) costs on the workers;
  • The decrease in the number of people in the organization;
  • A small amount of tax payments;
  • The opportunity to engage in direct business activities;
  • Quality assurance perform work professionals;
  • The division of labor.

Often business owners prefer to seek the assistance of specialized outsourcing companies as they have the opportunity to follow all the trends and innovations in their field, and timely to train the staff. In addition, the orientation provides them with great experience and professionalism.

It’s time to consider the drawbacks of such services.

  • Sometimes, in the case of transferring too many processes outsourcing companies, the expense becomes too strong.
  • We should not forget about the probability of termination of activities of such organizations.
  • Lead staff members much easier than hired through outsourcing.
  • Today the process of outsourcing does not have any formal legislative framework, and therefore, in theory, its application is potentially dangerous.

Despite these drawbacks, outsourcing continues to be widely used in many countries, including the Russian language. Such companies like Nokia and Nike, have successfully transferred a lot of the work for such an organization.

the advantages of outsourcing

Video about outsourcing

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