What Is Outsourcing And Why Is It Needed

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What Is Outsourcing And Why Is It Needed
What Is Outsourcing And Why Is It Needed

Video: What Is Outsourcing And Why Is It Needed

Video: What Is Outsourcing And Why Is It Needed
Video: What is Outsourcing | Explained in 2 min 2024, December
Anonim

Currently, various companies often face a lack of personnel, time and other resources for the development and implementation of long-term plans. In this case, they can resort to such a solution as outsourcing.

What is outsourcing and why is it needed
What is outsourcing and why is it needed

Outsourcing concept

Outsourcing is the transfer of certain production functions or business processes by an organization to another company on the basis of a contract. Unlike support and maintenance services, which are of an episodic, one-time, random nature, outsourcing is aimed at professional support for the uninterrupted operation of the infrastructure and individual systems for a long time. A distinctive feature of outsourcing is the presence of a business process.

The main source of cost savings through outsourcing lies in the overall increase in the efficiency of the enterprise and the emergence of the possibility of freeing up the appropriate organizational, financial and human resources. As a result, the company can focus on the development of new directions or on existing ones that require increased attention.

Outsourcing types

There are several types of outsourcing. The first one is industrial or industrial. In this case, the production of any product is transferred to a third-party organization in part or in whole. IT outsourcing allows you to delegate to a specialized company the development, implementation and maintenance of information systems at the enterprise infrastructure level (with support of equipment or software) or to entrust the implementation of work aimed at developing and / or supporting the functioning of individual system components (testing, hosting, programming, etc.) etc.).

The next type of service is business process outsourcing, which allows you to transfer external resources, knowledge and experience to an organization, an established infrastructure of a service provider and provide its own specific functions and achieve business objectives. Most often, business process outsourcing is the transfer of current standardized processes to the company.

Also, one of the most popular types of services is knowledge management outsourcing, which regulates processes that require in-depth study with serious analytical data processing, the formation and management of knowledge bases that are suitable for subsequent use and making appropriate decisions. Currently, knowledge management outsourcing is gaining popularity in the United States and other Western countries as an inexpensive and affordable solution for the accelerated development of the internal base of companies.

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