What Is Outsourcing

Table of contents:

What Is Outsourcing
What Is Outsourcing

Video: What Is Outsourcing

Video: What Is Outsourcing
Video: What is Outsourcing | Explained in 2 min 2024, December
Anonim

Outsourcing is a term that is used in business, literally translated from English as “use of an external source” and means the transfer of non-key business processes of a company to external performers for a long time.

What is outsourcing
What is outsourcing

Instructions

Step 1

Outsourcing is widespread in the USA and Western Europe, but recently this type of business has begun to develop in Russia as well. The first companies working in this area were private security companies. Outsourcing allows you to optimize the functioning of a company by focusing work on the main direction and transferring its non-core functions to other companies.

Step 2

There are several types of outsourcing. Manufacturing or industrial outsourcing is the transfer of a part of production functions to an outside organization. Business process outsourcing is the transfer of one or more business processes to the contractor, which are not core and key for the customer. Most often, standardized business processes (personnel management, accounting, logistics, marketing) can be outsourced. IT outsourcing is the delegation of the customer's information systems. Among the main functions that are transferred through IT outsourcing, there may be: creation of company websites, development and support of specialized software, maintenance of computer equipment.

Step 3

Outsourcing is very beneficial for the customer. He can significantly reduce his costs, increase production volumes without increasing the company's staff and receive quality services based on advanced technologies. Many outsourced services require only professional skills and knowledge from the contractor. Therefore, for an outsourcing company, this business is no less profitable, being a professional in a certain area, you can start a successful small business from scratch and practically without financial investments.

Step 4

The use of outsourcing is associated with certain risks for the customer. A company using the services of external contractors cannot always control the professionalism and quality of the contractor's personnel. Another risk is the leakage of confidential information, which is especially dangerous in the financial and accounting spheres.

Step 5

When concluding a contract between a customer and an outsourcing company, it is necessary to reflect in the text all essential conditions and clearly define the subject of the contract. All operations for the provision of services must be correctly executed and supported by documents. If the activity of the contractor is subject to licensing, then before concluding the contract, it is necessary to check the availability of a valid license.

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