16 Apr The Objectives of Outsourcing
Outsourcing is the act of assigning part of a business process to a third party on a repeated basis. It differs yet is similar from Proper Employment and Out-tasking.
The outsourcing process has the aspect of employing a third party to perform an assigned task without the liabilities from “labor laws.” This third party may be within the same country as you or be from a country a thousand or tens of thousand miles away from you. With this, you can easily terminate your relationship with such party without immediate legal precautions from the “labor laws” if they fail to meet your standards. If they meet your standards or if you are satisfied with their performance, you can again engage a contract with them to do another assigned task, preferably of similar nature.
The outsourcing process enables to enjoy having a reliable “regular employee” without the hassle of answering to the boundaries and rules set by the “labor laws.” You can continuously assign tasks to this third party and expect results from them as you would be expecting from one of your regular employees. However, if you feel that they are not able to perform such assigned tasks and meet your standards, you can easily terminate your relationship with them.
Outsourcing can simply be defined as the continuous out-tasking of a specific part of your business process.
If you assign a specific task to a third party, but not properly employ them, it is called out tasking. If you continuously out-task a specific part of your business process, it will now be called outsourcing.
But why should you outsource?
For most cases, the objective of outsourcing is to reduce cost, but that is not always the case. Most companies outsource to find cheaper source of labor and get the results they want as they would have if they are to employ properly. They can offer smaller benefits, compensation package, or cheaper deals, but still get the same or sometimes better results.
Outsourcing is also used if a certain company or individual has the inability to perform a specific task and get the result they want. These company uses outsourcing to look for an individual or a company who could provide better results than if they were to do the same task. The cost may be slightly higher but the results are better.
Outsourcing therefore has two primary objectives:
1. To get labor at reduced cost but get the same or slightly better results.
2. To get better results for the same or slightly higher cost.
No Comments