Have you ever heard of the term “outsourcing”? Do you know what this means? Today you will learn a little more about this type of service, which is widely used in the corporate world, in addition to understanding its advantages of the application.
What is outsourcing?
Do you know what is outsourcing? The English expression “outsourcing” is made up of the junction of two terms: out, which means “outside”, and source, which means “origin” or “source”. Thus, outsourcing is an external source or the act of hiring a service provider or an organization to carry out a project. Also known as subcontracting in other words, this type of modality has become common for reducing expenses, decreasing demand for labor, and maximizing results. According to a survey conducted in 2017, around 57 US companies have increased the hiring of outsourcing providers to outsource their business processes, and 46 of these companies are entering into this type of partnership to reduce costs.
How does outsourcing work?
Outsourcing of services was regularized in 1989 by the international economy and can be done for all specialties, except those in which the company operates. An HR company, for example, cannot hire another person to provide the same service. Aiming for greater agility in operations and profits, outsourcing can be done by admitting people or companies specializing in the desired function, who can act directly on-site or remotely.
The main areas of demand for outsourcing services are activities related to marketing, communication, finance, logistics, accounting, IT (especially software outsourcing services), human resources, and managing customer service.
Benefits of Outsourcing
So that you can learn even more about the outsourcing process, we have separated the main benefits of joining the resource.
This is the main cause of outsourcing, due to the low cost of implementation. Contractual expenses are reduced due to the absence of contractual expenses for transport, food, and social security contributions. Therefore, the employees who will provide the service will receive a little less value than if they were part of the company, in addition to bringing enough knowledge and background to produce the requests.
Some programming companies resort to Vietnam software outsourcing to reduce the cost through the currency differences between the two countries with the aid of professional foreigners.
By getting efficient employees at a low cost, the company's profits end up increasing dramatically. This is also due to good performance in the work processes, which optimizes the time and ensures an improvement in the work produced.
With this modality, it is possible to devote more time to internal activities, since employees are trained and act in specific functions, thus managing to execute requests more efficiently. Emphasis can be placed on improving processes, so that quality control is also optimized, improving the quality of the products or services offered to the customer.