A few words and general comments about outsourcing

I am convinced that many of you have thought at least once a few times about outsourcing. Should you introduce this in the enterprise? What are the advantages?Outsourcing allows to transfer some activities to a third party in order that that the company can concentrate on its core activities. Here is a very plain example that can allow to explain how it functions: company that operates in the area of event management and conferences does not have to posses the IT department. IT outsourcing firm would not only be satisfactory, but believably even preferred in this situation. The prime aim is cost cut – it is cheaper to outsource IT specialists, than to keep the IT department in the organization. Nonetheless, we need to keep in mind that that is a very streamlined example.

The vast majority of the drawbacks and hazards resulting from outsourcing are correlated with poor election of third party. Definitely, the amount of profits of outsourcing surpass the number of deficiences. Firstly, outsourcing is able to cut down labor costs. The important factor is if the firm uses the services of the firm placed in the same country or abroad. That is exceptionally trendy in the IT sector – many famous companies possess “their” IT departments outsourced and located in India, where there are a lot of educated people but low-priced cost labor at the same time. Read:

Second, outsourcing allows you to aim attention at the key activities of your enterprise.For example, if the development of recent software is outsourced, we can focus on key areas, like acquiring new costumers.

There are also a lot of minor advantages such as having an access to a group of professionals that we could not afford to hire otherwise as our employee. At the same time, this allows to develop the quality of services.

At the end it is worth noting 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 considered as some kind of outsourcing, this term emphasises business purpose, that goes far beyond the cost savings. Hence, it is worth to recall, that even though outsourcing is a very extensive term, not everything can be part of this “category”.