THE BELL

There are those who read this news before you.
Subscribe to get the latest articles.
Email
Name
Surname
How would you like to read The Bell
No spam

Many enterprises, in order to save money during the economic crisis, are forced to reduce staff, so they have to transfer some functions to incoming specialists. In this regard, companies are opening everywhere that provide businessmen with such a service. What is an outsourcing company? in simple words we will try to tell you in this article.

What is outsourcing?

Let's take a closer look, what is personnel outsourcing? The word "outsourcing" comes from of English language as "external source". The process itself consists in transferring the performance of some secondary functions to third-party performers. In order to save money, one company may transfer a number of functions to another. Most often, services are of a single nature or are provided sporadically over a certain period of time.

The outsourcing company provides clients with professional support, ensuring the smooth operation of infrastructure facilities or individual systems on the basis of a cooperation agreement. That is, personnel outsourcing is a long-term business relationship between the contractor and the customer, secured by contractual agreements. It is not necessary to refer to this area any services that are provided by external performers. Outsourcing is the transfer of non-core activities, which, in fact, the company can perform on its own, to third-party specialists for a long time. That is, the customer uses the services structural unit, which remains legally independent of its organization.

The popularity of outsourcing services is growing rapidly, but the market is not yet oversaturated, so aspiring entrepreneurs who decide to try their hand in this area can easily find their niche here. Oddly enough, the greatest demand for such services is observed during a crisis. Exactly this best time in order to build a successful outsourcing business.

Types of outsourcing

The following functions are usually transferred to outsourcing:
  1. Accounting. This is the best option. The most common options for cooperation are accounting, reporting, creation of primary documents;
  2. IT outsourcing. The services that are offered in this area relate to the maintenance of hardware or software. This may be the repair of printers, computers or the development of special computer programs. In recent years, IT outsourcing has become widespread. If you can not decide, pay attention to this promising line of business;
  3. Legal support. This service is most often used by small and medium-sized enterprises, which are unprofitable to maintain their own lawyer on staff. Outsourcing can also include business registration, liquidation of enterprises or their reorganization;
  4. Financial advice. During a crisis, many businessmen are unable to decide their capital and make a profit. Therefore, they turn to experienced financiers for help. For a moderate fee, professionals will advise you on how to choose the most profitable investment projects and minimize the risks of losing money;
  5. If you know, you can safely open an outsourcing company and advise start-up entrepreneurs on these issues. The services of such specialists are often used by individuals who cannot decide. Such consultations bring good additional profit to outsourcing companies;
  6. Selection and management of personnel in small business. This service is most relevant for large enterprises where there is a high turnover of staff. Traditional methods of recruiting and evaluating personnel are too costly both in terms of time and cost, so many businessmen turn to recruitment agencies that use new recruitment methods for help. Outsourcing company specialists will calculate the tax burden, select employees, and provide useful tips how to manage staff to achieve high productivity. It should be noted that recruitment agencies are not responsible for the quality of work of employees.
  7. The main methods of personnel search:

  • Placement of advertisements for hiring employees in the media;
  • Internet ads;
  • Cooperation with state employment centers;
  • Search for personnel at job fairs;
  • Attracting specialists through employment centers at universities;
  • Advertisements in public transport;
  • Targeted training in training centers;
  • Advertising on external media (light displays, billboards, etc.).

Firms that order staff rental services get the opportunity to significantly reduce the cost of maintaining their own employees in the state. In some areas, aspiring entrepreneurs can work alone, but sometimes they need assistants. In this case, it is more profitable to conclude a contract for the lease of working personnel with an outsourcing company than to hire employees on a staff and pay them monthly wages.

Business Advantages and Disadvantages

Consider the main advantages of outsourcing:

  • Since a businessman transfers some of the secondary functions to outsourcing, he gets the opportunity to concentrate on solving the main problems in the enterprise. In addition, the resources that were used to perform these functions are released. They can be redistributed and directed to business development;
  • Most often, outsourcing services are much cheaper than keeping qualified specialists in the state. Thanks to this, organizations can reduce costs without compromising the quality of services or goods;
  • Access to new technologies;
  • Possibility of episodic use of services of specialists;
  • Transfer of responsibility for the performance of certain functions.

Flaws:

  • For large organizations the transfer of certain functions to outsourcing is most often inappropriate, since in some cases this leads to the leakage of secret information, as well as a decrease in efficiency in solving important issues. The loss of confidentiality can significantly reduce the competitiveness of a business and lead it to bankruptcy;
  • psychological factor. Many entrepreneurs refuse to trust outsiders with inside information;
  • Excessive enthusiasm for outsourcing can lead to complete dependence on external performers.

Company registration

Before you open an outsourcing company and draw up all the documents, you need to carefully analyze the market. Nowadays, accounting is most often outsourced, legal support, marketing and IT. When analyzing the market, pay special attention to the level of competition. If there are several large staff rental companies operating in your area, it is better to abandon this idea and choose a different line of business.

So, you have drawn up a business plan for an outsourcing company and are ready to get to work. The first thing to do is register your business officially. It is better to register an outsourcing company as an LLC. Of course, in this case, you will not be able to receive any tax benefits, but such an organizational and legal form allows you to conclude agreements with other organizations. In addition, you need to open a bank account, as well as register with an insurance and Pension Fund. Own outsourcing company is the easiest and most affordable option for aspiring entrepreneurs who are looking for,.

Recruitment

Experienced businessmen use modern methods selection of personnel for work in an outsourcing company. This is very important point which needs special attention.

Typically, employees are required to:

  • Relevant education;
  • Competence;
  • Work experience;
  • sociability;
  • A responsibility.

In work, you need to use the most effective methods recruitment, because the reputation of your company and, accordingly, its profitability largely depends on this. For full-fledged work at the start, you need about 10 qualified employees.

Before you open a recruitment agency, you need to learn the basic tools for selecting employees. If you do not have experience in this area, hire an experienced specialist to help you sort out this difficult matter.

Responsibilities of the recruiting manager include:

  • Labor market research;
  • Operational search for specialists;
  • Development of new methods of personnel selection;
  • Creation effective system labor motivation;
  • Professional adaptation of new specialists;
  • Personnel training;
  • advisory services;
  • Preparation of reports.

Financial investments

An outsourcing company as a business is a profitable and quite promising business that does not require significant financial investments. To start, you will need 300-350 thousand rubles. This money will be spent on renting premises, paperwork, purchase of office equipment, advertising and salaries to employees. If you do not have such start-up capital, you can ask or find investors who will finance your venture.

Initial investment:

  • Office rent - about 70 thousand rubles;
  • Equipment - about 100 thousand rubles;
  • Consumables - 20 thousand rubles;
  • Salary - 100 thousand rubles;
  • Advertising - 20 thousand rubles.

It should be noted that 220 thousand rubles are monthly expenses. You can't expect instant profit in this business. To reach a good income, you must first develop a client base. When customers are convinced of the high quality of your services, profits will begin to grow. According to experts, the profitability of this business is 35-40%. The average monthly income of a small company providing workforce outsourcing is 300-700 thousand rubles. If you manage to attract regular customers, the business will bring a decent stable income.

conclusions

The importance of staff rental services in our country is greatly underestimated. But the situation is gradually improving, so entrepreneurs who want to start activities in this area can easily adapt to the market. In a few years, the level of competition will increase significantly. If you are attracted by such a line of activity, hurry up to take your place in this promising and quite profitable field of activity.

The concept of outsourcing has entered into Russian practice only a few years ago, but it has already become widespread. The essence of outsourcing comes down to the transfer by the company of certain operations to be performed by a third-party organization.

This phenomenon quickly took root, enterprises appreciated all the advantages of the system, and now there is a rather high competition in the market in the field of outsourcing services.

Outsourcing - what is it?

Outsourcing (English outsourcing: out - external, outside, source - source) - a set of measures aimed at transferring certain processes and functions of an enterprise to another organization. In general, outsourcing is the use of other people's resources.

Main features of outsourcing

  • the existence of an agreement on the transfer of functions;
  • long-term agreement (more than a year);
  • transfer of only non-core (non-core) operations;
  • the possibility of transferring business processes (accounting, recruitment, Maintenance).

What is an outsourcing company

The organization taking over the functions is most often highly specialized, which increases the quality of service and the level of responsibility. Such companies are called outsourcing or outsourcers.

Types of outsourcing

There are many types of outsourcing - almost all non-core activities can be transferred to outsourcing companies.

Accounting

One of the most popular forms of outsourcing is considered to be the transfer to a third-party organization of accounting and reporting in the enterprise. For the results of the enterprise-customer of services.

Several options for cooperation are possible:

  • drawing up reports;
  • record keeping;
  • full service (everyday accounting, reporting, creation and holding of primary documents).

In general, outsourcing accounting services- a convenient function that allows you not to create accounting in the enterprise.

IT outsourcing

IT outsourcing involves the transfer of a fairly wide range of functions related to the maintenance of computers and other office equipment. Any service in this area can be classified either as maintenance of equipment (repair of a printer, monoblock, etc.) or software (creation and maintenance of computer programs).

IT outsourcing is the most widespread worldwide - this is due to the increased use of information technologies and high requirements for specialists in this field.

Video - what are the advantages and benefits of IT outsourcing:

Personnel outsourcing

Personnel outsourcing is more relevant for large enterprises where staff turnover is possible. Personnel management issues are very costly in terms of time and cost.

Special recruitment agencies can take on the functions of hiring staff, calculating the tax burden associated with salary, calculation of bonuses and compensations.

Calculation wages much less often becomes the object of outsourcing services.

Responsibility for the quality of personnel work recruitment agency does not carry.

Legal

Legal outsourcing is convenient for medium and small companies. A special outsourcing company will provide tax and labor law. You can also outsource, reorganize and liquidate legal entities.

The high qualification of lawyers of outsourcing companies allows you to fully transfer legal functions. An in-house lawyer is likely to cost more than a third-party specialist, since the workload for a specialist is usually low.

Video about legal outsourcing:

Logistic

Logistic outsourcing is also called transport outsourcing. It implies the transfer of transportation functions to a third-party organization. This is convenient for those enterprises that use logistics services from time to time and there is no need to maintain their own logistics service.

The logistics company will take over the functions of storing stocks and finished products, and transporting them. All processes related to transportation and warehousing are also within the competence of the transport company.

Video about the nuances of logistics outsourcing:

Industrial (production)

Production outsourcing is typical for high-tech enterprises. Companies in the field of technology and telecommunications outsource the entire production process to a third party.

As a result, the cost of production is reduced, quality and reliability are increased. Thus, they can focus on promoting existing products and developing new products.

Advantages

The main benefits of outsourcing include:

  • cost reduction;
  • downsizing;
  • the ability to concentrate on core activities;
  • receiving higher quality services;
  • division of responsibility.

Outsourcing should be considered if paying for the services of a third-party company will be more profitable than maintaining your own department. That is, the cost of an outsourcer will be lower than the cost of staff member.

The main advantage of outsourcing is the ability to concentrate on core activities. So some of the non-core functions are transferred to another organization, this allows you to save resources that are directed to the development of the enterprise.

Companies engaged in the provision of outsourcing services offer more high quality work and are responsible for its results. Their narrow specialization allows them to train employees in a timely manner and use Hi-tech, which is also an advantage for the customer enterprise.

Price

In absolute terms, the cost of outsourcing is higher than hiring a full-time employee. But it is also necessary to take into account the real savings in time when comparing and take into account the opportunity costs.

The outsourcing company is responsible for all payments related to the employee's salary: insurance premiums, payment sick leave, maternity leave. Also, in case of temporary downtime, the costs associated with them will also be borne by the outsourcer.

Many outsourcing companies with long-term contracts offer discounts for the same amount of work. Payment for outsourcing services occurs only upon the fact of work performed.

Exists three types of outsourcing payment:

  • payment according to the result;
  • payment according to the hours specified in the contract;
  • pay for actual hours worked.

Most pay based on results- funds are transferred only after a specific quantifiable result has been obtained, for example, the preparation of financial statements.

Payment by the hour, specified in the contract, is usually used when performing non-standard tasks, time standards for which are not established. In this case, the outsourcing company puts forward a proposal for the execution time, and the customer company agrees to the set time frame.

Pay for real time worked used, for example, when ordering outsourcing services for hiring personnel. An outsourcing company specialist spends time recruiting. He is not responsible for the subsequent work of the hired employee. He is paid only for the hours actually worked.

Outsourcing in Russia

On the this moment Russia already has a certain understanding of what outsourcing is. But this, in turn, gave rise to many wrong stereotypes. Not all enterprises understand that outsourcing is not hiring employees "from the outside", it is a full-fledged cooperation in a specific area.

Outsourcing makes it easier to increase capacity and increase market share. An outsourcing company provides support and full service for a certain process, which means that it is easier for the customer company to focus on development.

Some major Russian companies have already appreciated the advantages of outsourcing, especially in the field of IT-technologies and recruitment. Long-term contracting for the transfer of functions allows you to reduce costs year after year.

Another feature of Russian outsourcing is the attitude of managers to the transfer of functions. It must be remembered that outsourcing is a division of responsibility, and not a complete transfer of responsibility to the outsourcer.

Examples

Currently, many world leaders in various industries use the services of outsourcing companies.

A global example of the successful use of outsourcing is IKEA company (Ikea). At the moment, the company uses more than 2,500 third-party organizations for the production of products. The supply chain (logistics service) is also outsourced. All activities of the company are focused on the main activity - retail sales.

Another major company NOKIA (Nokia) has completely outsourced maintenance and uses the services of IT outsourcing companies, which allows the company to reduce costs. Nokia also outsourced call center services, which allowed the company to focus on core production and marketing, as well as on creating a new product.

Discussion (14 )

    Any outsourcing services have now become very popular, and there is simply no end to clients. Well, it’s much easier to outsource work if you don’t have time and where they will pick up the right person for you.

    Outsourcing in Russian is when the same workers stay in the same places and do the same work, but are subordinate to another employer and receive a significantly lower salary, although the former employer pays outsourcing. companies many times more than they paid their employees before. The question is who benefits from this and where does the difference go?

    That's how it is in our region (Bashkortostan). We, that is, those staff, were transferred to this outsourcing company, where we have to sign an agreement every three months. And as they explained to us, we will work and in work book there will be no record, and there will be no experience. There are no sick days or holidays. ?

    Downsizing regular staff first of all, the creation of an outsourcing company by the production managers themselves, the recruitment of unqualified personnel into the staff of an outsourcing company, the lack of social programs, and finally taxes that could replenish the state treasury, here is our Russian outsourcing.

    Yes, the delimitation of powers! Protected the leader from fuss, Each specialist in his field and clearly fulfills his duties. An enterprise under socialism, even doctors

    And tell me about labor protection, can I provide outsourcing services? If yes, then tell me where to start, education is the direction of technosphere safety.

  1. Hello.
    Our company is looking for personnel for work on a rotational basis on the territory of the Russian Federation.
    Now we are expanding the market for our services, namely, the search for companies with which we plan to work closely in the future,
    For a small commission fee, we are ready to provide you with employees for the vacancies that are currently in demand.
    If you are interested in our offer, then we can discuss all the conditions in the future.
    If you are interested in our offer, we will wait for your reply by e-mail.

    I am an accountant, I have long dreamed of doing outsourcing services, but I am afraid! And I’m not so much afraid that I won’t cope or that they will throw me, I’m afraid that I can simply not find clients.

    My business is a cargo taxi service. This is a small organization with five employees. The senior dispatcher calculates and pays salaries to employees. The rest of the accounting is transferred to a third party organization. A professional accountant does the reporting for my firm. This is convenient, so outsourcing accounting services is an ideal option for me.

    I can say that the phenomenon of outsourcing is described here in ideal conditions, as it should be. A sort of "spherical horse in a vacuum." In our realities, there are a lot of abuses in this area. In fact, the outsourcing agreement is a loophole that allows, for example, a variety of state unitary enterprises subordinate to the executive authorities, after the conclusion of state contracts with the state. the customer to give the declared work to a third-party sub. to the contractor (at the same time, the State Unitary Enterprise retains the margin and appears as the performer of the work). This is absolutely legal, since neither 223 FZ nor 94 FZ in any way regulate or prohibit the organization that won the competition from engaging third-party firms under outsourcing contracts that actually do the work.
    I know this scheme quite well, as I often came across it personally, having worked in the public sector for many years.
    This example, of course, does not mean that the practice of attracting contractors as part of outsourcing is vicious in itself. In private business, for example, this is applied quite successfully and justified. And if we talk about small businesses, then outsourcing is perhaps the main means of saving payroll at the beginning of the functioning of any organization.

    Quite a convenient proposal for doing business at the enterprise. And indeed, if the company is small, why have an entire accounting department, for example, to compile this or that report once or twice a year))) Now everything is simple. You can easily conclude an agreement with a third-party office that deals with one or another service you need. And that's it! If necessary, you can use their services, thereby facilitating your work and freeing up time, and most importantly, saving money! This type of service has really become popular in our country relatively recently, but today it is very popular.

    Undoubtedly, outsourcing services have a great future. Now there are a lot of companies, the staff of which is not numerous. For example, in a company with 5 full-time employees, it is unprofitable to keep an accountant, a computer and IT specialist, but there is a considerable need for such services. Outsourcing firms also spend little time on such clients, being paid either by the hour or by results. Profitable and convenient.

Updated 04/01/2014. The article is relevant for the entire year 2014.
To date, people have come to understand that the narrower a person's specialization, the more competent he is in it. The professionalism of such a person is beyond doubt. But, often, for medium and small enterprises, the maintenance of such a person in the state is an exorbitant burden. They simply cannot pay for it. This is where the term “outsourcing” comes into play. What is it?

Outsourcing is the transfer by an organization of some production functions or business processes to be serviced by a third-party company that specializes in desired area. But, unlike support, which has a one-time or episodic nature (came - done - left), Outsourcing transfers the functions of professional support for the performance of individual systems on the basis of a permanent contract (for a period of 1 year).

What are the types of outsourcing

Traditionally, it is customary to single out the following areas:

  • - in most cases, this is programming; website development; software development and maintenance; maintenance of equipment (setting up peripherals: printers, mice, scanners). This may also include the development of sufficiently large and complex computing systems, as is the case with data centers.
  • Manufacturing outsourcing- transfer of part of the production functions to third-party manufacturers. For example, advertising agencies using printers and their printing facilities, or wine houses that purchase wines and bottle them under their own labels.
  • Business Process Outsourcing- transfer to the executing organization of a separate business process (or several), which at the same time are not the main ones. For example, accounting, personnel management, advertising, logistics, marketing.
  • Knowledge management outsourcing- management of those types of processes that require a deeper study or serious analytical processing of large data sets, the creation and management of knowledge bases (KB), which will subsequently be used to support decision-making. This type of outsourcing is just beginning to gain popularity in the United States.

Let us consider in more detail one of the areas, namely the IT industry.
Here, outsourcing implies the transfer of information systems to a third-party company.
Generally speaking, for a successful business today, it is not at all necessary to perform all the functions of a company with the help of its own staff, because you can shift the management of these processes onto the shoulders of a specialized organization. A firm that takes on "foreign" functions is called outsourcing, or outsourcer.

The most widely used in practice is the subscription service of computers. So, the customer is offered a full package of services, which allows him not to hire a system administrator.
The complex usually includes the following types of services:

  • setup and hardware equipment;
  • setting up and updating software;
  • protection of the network from unauthorized access from the outside;
  • anti-virus protection;
  • timely repair and replacement of accompanying equipment;
  • information backup (backup);
  • consulting and training of personnel.

Associated services include laying local networks, IP telephony and PBX setup, IT audit and consulting. That's why this species outsourcing often takes the form of servicing the entire complex of information systems of the enterprise-client.

Data processing centers (DPC)

Today, even small and medium-sized companies are increasingly faced with the need for large computing. Their capacities are not enough, and here data centers and Data Processing Centers come to the rescue. This saves the company from attracting financing, solving problems with energy supply, purchasing server equipment and ensuring security. Also, data centers periodically require modernization. Small companies it's just not profitable. It is easier and cheaper to conclude an SLA agreement with a commercial data center and receive data processing services as a service.

History of appearance in Russia

At the origins of outsourcing Russian Federation became private security companies that allowed hundreds of enterprises to protect their business, no matter how small or large it was, with better quality and more professionalism, but without maintaining several full-time security guards. At first, everything was organized at a low level. But gradually the niche developed, and marketing became more and more important. Marketing specialists at that time were simply sorely lacking, and this created fertile ground for the emergence and development of specialized advertising agencies that were able to carry out complex projects.

Following the advertising agencies, PR agencies and some research companies also pulled up.
And in the now distant 1998, the Runet boom began. It was he who led to the emergence of not only thousands of sites, but also a gigantic market for services for their creation and promotion. For many people, this was an amazing opportunity, which resulted in 3 hosting companies (like three pillars): masterhost, RTComm.ru and Utransit (formerly Valuehost). According to independent research by RUnet, these three companies currently host more than 65% of Russian websites.

Now you know what outsourcing is, what types of outsourcing are, its history and development.

One of good ways improve the efficiency of the work process and achieve greater returns from the staff recognized the principle of division of labor. True, not all enterprises can afford to create a large staff of highly specialized specialists, because their salaries are far from small. An excellent alternative is available to such organizations: they can transfer (delegate) some functions that are not of key importance to a representative of another organization. This delegation is the answer to the question of what is outsourcing. In simple words, the process can be described as the involvement of an outside specialist.

Outsourcing Features

The outsourcing company, which undertakes the implementation of these duties, concludes an agreement with the customer company. Long-term cooperation is of interest to both companies, as it is mutually beneficial.

Distinguish between full and partial such in simple words:

  1. Full - outsourcing company assumes the performance of all functions in any area.
  2. Partial - involved employees should carry out only some procedures or activities.

Despite the fact that this concept is relatively new for domestic businessmen, many have already appreciated how convenient and economical outsourcing is. What it is? Types and examples can be given as follows: attracting a firm to full service computers of the enterprise is a complete outsourcing. Partially, however, the transfer of repair duties or monitoring of software status is performed, while other tasks remain with the staff member.

What is outsourcing: in simple words about the types of outsourcing

In the course of activities modern enterprises You may need the following types of outsourcing:

  • Production consists in transferring the performance of a production task to another organization. Most advertising agencies can be cited as an example. They entrust the printing of printed products to specialists (banners, flyers).

To save on purchases additional equipment and expanding their capabilities, it is extremely important for such enterprises to know what outsourcing is. In simple words, this concept can be described as a reasonable economy.

  • In the field of IT, this type of outsourcing involves the involvement of organizations to create websites, maintain equipment that is at the disposal of the customer enterprise or to develop any type of software with its subsequent maintenance.

A good example is retail chains stores that do not employ programmers, but hire an outsourcing company on a contract basis to create and maintain their websites.

  • In the field of business processes, if it is necessary to regularly perform small amounts of work with documents or with personnel, an appropriate outsourcing company is involved. What is it in simple words? This is an accountant, economist or business coach, who are not among the permanent employees of the enterprise. Hired professionals perform work related to payroll, accounting, legal or consulting services, audit, recruitment.

Benefits of outsourcing

Among the advantages of such a phenomenon as outsourcing is the elementary ability of the company to concentrate its efforts on the conduct of core activities. That is, an enterprise can only engage in its own production without being distracted by secondary tasks (for which specialists are invited).

Significant savings are also important. financial resources. It is due to the fact that it is possible to reduce investment in resources and refuse to train and maintain unclaimed employees.

Thus, outsourcing becomes a significant savings factor. What is it in simple words: the work is done faster and better by an invited specialist. Some businesses report a 20% reduction in costs. In addition, new avenues of strategic partnership open up new opportunities for all involved.

Disadvantages of outsourcing

One of the disadvantages of this type of activity is a certain dependent position in which the customer company falls. The occurrence of any difficult situation (economic or industrial) for a third-party service provider affects the work of their client.

In addition, there may be dissatisfaction on the part of permanent employees of the enterprise, who are forced to make a management decision to use outsourcing. What is it, definition, meaning and features have been discussed above, however human factor was not taken into account. Sometimes incoming employees can be regarded as competitors or applicants for jobs.

Also, a significant disadvantage of outsourcing is the need to provide third-party enterprises with confidential information about the enterprise.

Outsourcing - business

Having understood what outsourcing is (in simple words - delegation), we can consider some aspects of the organization and functioning of an outsourcing enterprise.

According to many owners of their own companies, this type of activity is quite profitable, profitable and promising. In addition, the formation of such a company does not require such large sums of money as a traditional business.

Initial investments are required to pay for the rent of the premises, paperwork, purchase of office equipment and equipment. Also, an important cost column is the selection and maintenance of qualified personnel, advertising the newly formed company. Raising invested funds has become a traditional business practice. Entrepreneurs who do not have the required amount to form a company resort to this step.

Investors can be both individuals and other enterprises or banking institutions.

Personnel - the main resource of an outsourcing company

Based on the fact that an organization that “rents out” its employees receives remuneration for the work they perform, its personnel must be well trained, competent, literate and well versed in their field.

When looking for staff, applicants put forward the following list of requirements:


What is outsourcing and outstaffing: differences in concepts and terminology

Such seemingly similar concepts actually have much in common. However, in practice, these are different forms of labor organization and the main differences are listed below:


Conclusion

Thus, we can conclude that a new word and a new concept serves many entrepreneurs in various business areas. To increase the profitability of production, reduce the cost of maintaining personnel and expand the organization's own horizons, personnel outsourcing is used. What it is in simple words can be described by several synonyms: delegation, transfer of duties, involvement of specialists from outside.

There is an opinion that in times of globalization and the rapid development of the business segment of the economy, being a narrow-profile specialist is extremely unprofitable. This is a fundamentally wrong statement. The narrower the specialization of a company or person, the higher the professionalism and the deeper the knowledge. If some related activities seem burdensome to the company in terms of money or any other costs, outsourcing comes to the rescue.

Outsourcing, definition and origin of the word

The word "outsourcing" of English origin comes from the merger of two words: out "external" and source "source". Thus, outsourcing is, in simple terms, the process of transferring a part of production or business processes by a company to another company that is an expert in this field.

Delegating processes, not related to the main production, but which are strategically important for the outsourcer (a company that takes on “foreign” functions), the company makes a mutually beneficial exchange.

It is worth distinguishing between the concepts of one-time support and outsourcing. One-time support is episodic, and an agreement is concluded with the outsourcing company for the provision of outsourcing services for a certain period of time.

What drives companies to outsource? Primarily unwillingness to waste precious time on the directions accompanying the main activity: software, accounting, maintenance.

Outsourcing allows you to entrust the management of these areas to professionals, and concentrate all your efforts on solving the main strategic and production tasks.

Types of outsourcing

  1. Manufacturing outsourcing. Part of the production functions is transferred to a third-party organization. For example, advertising agencies that use production capacity printing houses.
  2. Outsourcing of business processes. The company outsources business processes that are not its core business to a third party. A classic example is the outsourcing of accounting services.
  3. IT outsourcing. Information Systems companies are transferred to the service of organizations involved in technical support and software. The list of transferred functions may include: website development, software support or its development, maintenance of computer and related equipment.

When transferring auxiliary business processes to an outsourcing company, they implement them to evaluate and control efficiency. Properly selected metrics improve the quality of interaction between companies.

Outsourcing allows companies to focus on what matters most. Diversification - expand the scope of the organization or product range, read more about diversification.

Advantages and disadvantages

When deciding to transfer some functions to outsourcing, one should not rely only on the experience of Western colleagues. The general state of the economy and the position of the target market segment should be taken into account.

However, one cannot be 100% sure of success. this enterprise. This is due to some of the features inherent in outsourcing as developing direction business.

The main task of outsourcing is to take non-core and highly specialized activities out of the business.

Let's start with the obvious advantages that the transfer of processes related to the main activity to outsourcing gives.

  • From an economic point of view, the involvement of an outsourcer allows the company to significantly reduce costs. After all, the company does not have to maintain an additional structure and inflate the staff. Transaction costs may also go down. Some fixed costs can be transformed into variables depending on the needs of the firm in a particular period of time.
  • From the point of view of the implementation of strategic tasks, outsourcing makes it possible concentrate resources on core production and improve operational control. In addition, the process of introducing new technological or managerial operations is facilitated.
  • On the technological side, outsourcing opens up access to higher technologies. If the staff does not have the necessary specialists, they can be attracted under the outsourcing program. The quality of service in the case of an outsourcer is significantly increased, since a third-party company undertakes to control the quality of the work provided under the contract.

Of course, there is also the other side of the coin. Let's outline the main disadvantages that can prevent a company from achieving its desired goal through outsourcing.

  • Rising costs. This is possible if a company outsources too many processes. In addition, the introduction of an outsourcing system requires careful calculation of costs and their comparison with the expected economic effect. Transaction costs may also rise. The possibility of bankruptcy of the outsourcing company should not be ruled out.
  • Control over the execution of outsourced processes may be lost. Management may lose the link between management and business practice. Reduced managerial flexibility.
  • concentration danger technological processes In one place. This again deprives the company of flexibility in certain business processes.
  • The lack of a clear legislative framework outsourcing. In addition, many companies are afraid to delegate business processes to other persons for fear of information leakage or possible violation of contractual relations.

Determining the gross profit of an enterprise or both is applied to assess the operating results of a firm.

For more information about the use of outsourcing in the activities of online stores, see the link. From delivery and outsourcing of accounting services to the transfer of almost all functions of the online store under the control of external companies.

Outsourcing examples

Henry Ford is the father of manufacturing outsourcing. He was one of the first to understand that no firm can be self-sufficient.

The head of an automobile company sought to personally control all stages of production, but he soon encountered exorbitant costs that went into servicing all areas of the company's activities.

Then he asked for help independent companies taking on some of the tasks. Now Ford produces only 30% of components on its own, the rest of the production is outsourced.

Another giant who knows firsthand the benefits of outsourcing is IKEA. Own production IKEA has practically none, instead it cooperates with 2500 suppliers proven over the years. Logistic functions of IKEA are also delegated to a third party organization.

It turns out that IKEA directs all its resources to organization retail business and other services and business infrastructure are outsourced.

Kodak decided in the early 1990s that leadership in high technology is not her strategic goal. She outsourced all IT-directions to IBM, which was just trying to gain leadership in this segment. An ideal example of mutually beneficial outsourcing.

Prospects for the development of the outsourcing market

In general, outsourcing seems to be a good deal for many companies that do not have enough resources to control all stages and processes of production. World statistics confirm this.

The American Management Association conducted a survey of 600 firms. It turned out that 20% of them had already outsourced some financial operations, and 80% - administrative functions.

Such statistics give the right to assume that an increasing number of companies will look at the possibility of using outsourcing.

THE BELL

There are those who read this news before you.
Subscribe to get the latest articles.
Email
Name
Surname
How would you like to read The Bell
No spam