Outsourcing is one of the most important business trends today. Looking for a way to effectively reduce costs, companies have been using outsourcing as a kind of cost and project management strategy for years.
Outsourcing, simplified, can be defined as the use of external companies and individuals to perform a particular job.
Outsourcing offers huge opportunities and many multinational companies know how to use it very skillfully.
It can enable the use of the best experts and practices that fit a project or budget of any type and as needed. Management focuses on the core business and strategies, leaving the management and work on projects or business tasks to someone else. An advantage such as hiring a specialist to work on a particular task does not oblige the person to be retained after the end of the project, if there is no need for them, and it is easier to terminate the employment relationship. Outsourcing also brings significant time savings, especially when a foreign company hires locally, with already developed solutions and databases needed for project success at the local level.
A survey conducted among HR managers by the American Society for Human Resource Management highlighted the following reasons for outsourcing:
- 26% money savings;
- 23% focusing on strategy;
- 22% improvement in competence;
- 18% lack of experience;
- 17% offer services that would otherwise not be offered.
Some experts predict the growth of the outsourcing market, only in the American territory, in the next year to 200 billion US dollars.
All in all, outsourcing makes sense. Experts, specialists, free lancer consultants and companies specialized in individual work areas and functions provide services to many organizations at much lower prices than would be possible by establishing in-house work. Both parties, and in many cases the third party, profit from this type of arrangement.
Outsourcing is not only useful in reducing costs and saving money, but also makes certain tasks faster and more efficient, enables market penetration faster than the competition, maximizes the flexibility of the workforce and provides access to highly qualified workers. This makes it one of the most significant business trends today.
ADVICE from a business advisor
Why use outsourcing?
- You reduce costs and save money
- It makes the execution of certain tasks faster and more efficient
- It enables market penetration faster than the competition
- It maximizes workforce flexibility and provides access to highly skilled workers