What is outsourcing?

Posted by on December 23, 2012 in Info | 0 comments

When we talk about outsourcing, we are talking about the transfer of non-core assets and business processes to third party contractors or outsourcing companies.

Necessary component of any company – is the cost, not only on the core business, but also to manage non-core assets that do not generate profits, but are vital to the proper operation of any company. And the bigger they are, the higher the costs, staff, as well as load management personnel associated with non-core activities.

Paying too much attention to non-core assets, achieving in this area of ​​high quality – employment that takes too much time and effort managing the enterprise level, and requires considerable financial investment.

At the same time, implementation of the outsourcing business model can yield positive results, as the external contractor for his expertise and technology can ensure the development and optimization of non-core assets transferred at a higher and qualitatively. The period of active implementation outsourcing model in the world was in the 1990s., When widespread agreement that the idea of ​​division of functions in the primary and secondary transmission and the last skill in the art. Learn more how to Hire Dedicated .NET Developers.

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Types of outsourcing:
IT-outsourcing

The growth of outsourcing began with the IT sector.

Because of its rapid development in the late XX century. companies faced with the need to invest more resources in order to quickly become obsolete and expensive software and attract more skilled workers.

Companies have started to worry that it takes more time and resources, and began to attract professionals to manage non-core assets.
Business Process Outsourcing

Currently, in addition to IT, there are two types of outsourcing: BPO (Business Process Outsourcing – BPO), as well as manufacturing or industrial outsourcing.

Business process outsourcing involves a large number of secondary functions.

One of his long-cultivated areas in the world – industrial and economic outsourcing, which includes outsourcing service real estate services for cleaning and food workers, fleet management companies, etc.

To this type also include personnel management, internal audit, logistics or transport outsourcing, outsourcing procurement, finance, accounting, and other functions.
Industrial outsourcing

In the industrial or manufacturing outsourcing company outsourced its production chain or parts of it, where the production process in-house costs the company more than the attraction of outsourcing.

The first part of the production transferred to outsourcing electronics manufacturers and telecommunications companies, and is currently manufacturing outsourcing spread to most of the activities.
The advantages of the transfer of non-core assets to outsourcing

Opportunity for leadership to focus on their core business. Due to the transfer of functions outsourced reduced operating costs, and management is not distracted by non-core activities.
Optimization of staff and as a consequence less of the operating costs or transfer them from the permanent to the variables.
Minimization of financial risks and the ability to reallocate their resources, directing them to the processes that primarily enhance shareholder value.
Implementation of outsourcing is a significant factor in the development of relations with foreign investors, as it increases investment attractiveness of the company.
Outsourcing allows companies to use the best international experience in providing non-core processes.
Outsourcing companies are investing in improving their own technologies, methodologies, as well as their staff. First, they explore and are implementing the latest global innovative methods of business process management.