Outsourcing your work load when needed
Outsourcing known as the customer or buyer the company that is looking to
outsource some of the work load will ideally approach other companies or individuals who are able to provide the particular service for a fee.
This fee is usually a much lower commitment for the company when compared to having to physically set up the mechanisms that would be needed to get the particular outsourcing job done within the existing company’s makeup.
Therefore through the action of outsourcing the cost saving is evident. Besides this there is also the advantage of not having to allocate staff to the particular task which may lead to the general disturbance in the current flow of the work environment.
The outsourcing exercise is generally acquired from sources outside the physical realm of the company and at a physically different location.
Sometimes outsourcing is from a different country where it is more cost effective than to have the same work done within the company’s current makeup of expertise.
The beginnings of the outsourcing style of getting work done using outside contributing help, was first evident in the country of Japan.
This style was made popular through the demand of various different components within the business make up, having to contribute to one singular goal without actually having all the expertise under one entity, thus the birth of the outsourcing style.
Later other countries started copying this style simply because of the cost effective and time saving elements.
Outsourcing to keep your cost down.
Most companies’ face the challenge of keeping escalating costs down, while still maintaining the highest of standards in order to stay competitive.
In doing so these companies would have to look into areas that can benefit and one option to consider and is currently being widely used is the outsourcing tool.
Without the possibility of using the assistance of an outsourcing company the principal company would have to consider elements such as hiring, training, administration, benefits, absenteeism, work space and equipment.
In some cases such expansions would seem more burdensome than welcomed therefore the nest best option would be to consider outsourcing.
The following are some points to consider when determining what’s best:
Expertise – identifying the relevant providers in a particular field and then ensuring the best possible price is agreed upon for the services rendered would be the first step to take. The outsourcing company chosen should ideally be an authority in its particular field.
Management – not having to micro manage a particular segment of the overall project simply because it has been taken care of through the outsourcing platform can be quite a relief both mentally and physically for all involved in the project as a whole.
Personnel flexibility – being able to hire an outsourcing company that works on a project to project basis would be better than having to hire someone only to have to let them go when the project is over.
Outsourcing is better than hiring personnel
This cost incurred for hiring personnel on short term contracts can be significantly higher, as for the worker there is no job security thus the demand for higher wages is common and expected.
There are also services provided by companies that can link the various wants to the needs of other companies. Hiring such companies to find a suitable partner in the outsourcing exercise would definitely benefit as the service provided would be tailor
made to the requirements of both parties.
Making outsourcing decision is usually not one to be taken lightly. One should be aware that anything done on behalf of the business entity will reflect directly on it in terms of quality of the end product being made.
Although in almost all cases, especially if it has been well thought out the money saved can be very significant indeed when the services of an outsourcing company is used.
This is mainly because the chosen outsourcing company is ideally supposed to be able to provide the expertise and technologies that would not be available within the principal company itself.
However both parties should be committed and the monitoring process will take time and energy but once the standards and expectations are well established and understood, the outcome can be very workable indeed.
The more popular areas that are normally sought for outsourcing purposes are as follows:
IT functions – when businesses expand there may be the need to stay current especially within the IT world.
If the business entity did not initially require any IT intensive contributions then the initial setup of the business entity would not have configured this element into the general
makeup of the company thus the need of outsourcing..
Business processes and HR – here again as the business expands or even if there is no real need to have the actual full time employment of such expertise in place, the out sourcing services can be sought.
Such activities can be outsourced when and if needed and it also provides for expertise and specialized skills.
Finance – outsourcing auditing functions is common and this can be further extended to outsourcing the entire accounting functions of a company. Elements such as
bookkeeping, tax management and invoicing could easily be
done through the outsourcing platform.
Project tracking is not about being able to complete a project within the stipulated time frame and with satisfying results, budgeting and good management skills. By using the project tracking exercise the idea is to ensure everything is optimized and even better and expected results should prevail or at least present possibilities of this in the
When a project involves the coordination and contribution of several different parties and contributions a lot of confusion can occur to derail the time line when there is not coordination and tracking done.
The tracking exercises have many benefits and below are just some of the reasons why it is necessary to have this in any project:
Keeping the time line adhered to at all times. The tracking exercise helps to keep each contributing party fully aware of their time allotted to ensure their part of the exercise is completed properly.
If there are any problems or discrepancies occurring within the time frame given the tracking exercise will allow for this to be highlighted and thus making it possible for the necessary action to be taken.
Tracking also helps to indicate when a particular contributing factor is not yielding the effects it was initially designed to do, thus causing some level of inefficiency.
Savings of time and effort can be made when the original design is changed or tweaked to facilitate better productivity and eventual success.
The tracking mechanism can also help to detect poorly functioning sections or personnel within the project thus either replacing these or reminding them of the commitment expected of them.
This is an especially effective way of ensuring all concerned are fully contributing to the success of the project.
The tracking exercise can also help the identify areas where cuts can be made to make the general outcome even more cost effective and thus generating a higher profits percentage.
One of the foremost concerns when choosing to use an outsourcing company is the almost immediate lost of complete control over the functions and management of the particular part that is being outsourced.
Though outsourcing companies will do the job as required as their reputations are also on the line, the standards and mission that drives the customer may not be shared by the outsourcing entity as they have no vested interest in the outcome as a whole.
The outsourcing company’s concern would be the profits they make out of the services rendered and the quality of their contributions and almost nothing else.
Most contracts drawn up between principals and the outsourcing company is done to the advantage of the outsourcing entity, therefore any problems that arise within the relationship and the work produced will require an outside mediator to handle and this will incur further cost for the principal company.
Then there is also the fact that any additional requirements not originally stated in the contract would incur further costs thus perhaps making the whole endeavor cost ineffective as compared to doing it “in house”.
Security and confidentiality is also another factor to be considered especially when the outsourced work is of a sensitive nature.
Competitors will be only too happy to indulge an outsourcing company for information pertaining to issues that may prove to be of help to them. In most cases loyalty is not part of the deal when outsourcing assistance is sought.
As in everything there are advantages and disadvantages and the outsourcing options presents no difference. Before any particular choice is made either way the individual should first take the time to explore and understand both views before actually making a outsourcing decision.