Types of Outsourcing

Outsourcing is the transfer by an organization, on the basis of a civil law contract (for example, a contract for the provision of services) to another company, of certain functions that are not related to the main activity of the organization.

Entrepreneurship is a complex mechanism consisting of many elements.

In addition to the main type of activity that arose due to the implementation of a business idea , in the process of carrying out economic activities, many enterprises are faced with the distraction of efforts and costs of other auxiliary activities that are designed to ensure the continuity of business.

And if large enterprises, in connection with sufficient volumes of sales, can afford to create additional non-core services and lines of business, purchase the necessary equipment and hire qualified specialists, it doesn’t always make sense for small businesses to independently organize and accompany some part of business processes that can be trusted by outsiders to professionals.

The main types of outsourcing

Outsourcing call center. Delegation of authority to process customer complaints and their support. A living example of an outsourcing company specializing in customer support companies is https://wow24-7.io/

IT outsourcing. Outsourcing company transfer of functions for the implementation, maintenance and improvement of information technology in the enterprise. Such functions may include: services of programmers for developing software, acquiring and maintaining computer equipment for an enterprise, building computer networks, etc.

Financial outsourcing. Providing accounting and auditing services. One of the most popular types of outsourcing in Russia. There is an opportunity not to introduce the position of chief accountant, but to delegate the authority of a specialized organization. The disadvantages include the inconvenience in the workflow process in connection with the location of the outsourcing company at a remote distance.

Production and business outsourcing. A striking example is the so-called cleaning companies.

Industrial outsourcing. Delegation of part of business processes that are directly related to the main activity. Some companies, such as cosmetics, electronics companies and others, may transfer a significant part or the entire production process to another company, while focusing on wholesale and retail.

Outsourcing staff. Allows to attract freelance qualified specialists to the work.

Outsourcing companies are usually recruiting agencies. Logistic outsourcing. The provision of transport services, services for the compilation of routes of traffic, storage of goods.

Legal outsourcing. Providing legal and information support to a third-party organization.

Outsourcing of publishing. The transfer of the outsourcing company the functions of printing and publishing various documents and materials, usually related to the media.

Outsourcing Benefits

Cost reduction. Why hire a specialist in any field if he has to work 50 days a year.

Outsourcing allows you to concentrate on the main activity and not be distracted by non-core areas. It is impossible to do everything well, so focusing on the main activity allows you to conduct business at a higher level.

Easier to implement advanced technology. Every professional in any field of human activity keeps abreast of the innovations that come almost daily to our lives. In addition to the availability of knowledge and the necessary skills, representatives of outsourcing companies have an interest in introducing advanced technologies, since this type of activity is the main one for their business.

Disadvantages of Outsourcing

In the case of using outsourcing in large volumes and on an ongoing basis, costs may not decrease, but increase.

Loss of control over some business processes. The deep implementation of outsourcing in the business processes of an enterprise can lead to being in the role of a dependent party on the services of a third-party organization.

Possible information leakage. An outsourcing company in the process of cooperation with the enterprise will in any case have access to information constituting a trade secret.

Outsourcing is not a panacea for all ills and is not always the most profitable solution. However, having studied the actual prevailing need at a particular enterprise, we can conclude that at this particular moment, delegating the authority of a third-party organization is the only right choice.