Outsourcing: when is it convenient and what are the advantages for the company?
Outsourcing, a contraction of outside resourcing, can be defined as the process by which external suppliers are assigned, for a period of time contractually defined, the operational management of one or more company productive or support functions, including the means of production. Instead, externalization is defined as the productive activity entrusted to the outside which does not include the means of production.
The study of a marketing strategy, personnel selection, credit management, credit recovery … are just some of the activities and services for which companies regularly resort to outsourcing.
The scenario in which companies currently operate, being increasingly dynamic and competitive, requires a constant focus on its core business to increasingly improve the quality of the offer and reduce costs as much as possible.
when is it better to rely on outsourcing?
The outsourcing of business processes is the business model diametrically opposed to that of vertical integration, which provides for the internal management of all the necessary activities.
The top management usually establishes, based on an analysis of internal competences, whether to manage certain in-house activities or whether to outsource them. The choice is almost obligatory in all cases where internal resources are not available with the skills necessary to perform specific functions.
Often, the choice is dictated when the investment, in terms of training and infrastructure, necessary to complete satisfactorily business processes would be disproportionate compared to the economic advantages that would be gained from it.
what are the advantages for companies that resort to outsourcing?
Relying on the outsourcing of specific company services, internal human resources can put more energy into the core business, without dispersion.
Who offers the performance of a specific activity in outsourcing usually boasts specialized professional figures, equipped with a specific know-how, able to carry out a job in less time and with a result probably better than what would be obtained in-house .
Even the tools and the infrastructure of the supplier, in addition to the skills, will be specialized and studied in function of a better result in the shortest possible time.
In most cases, process outsourcing guarantees significant savings for the client company, which is in fact eliminating, first of all, the operating and recruitment costs of an internal employee hired and trained specifically for that specific activity .