OUTSOURCING

Outsourcing has become very popular recently due to some evident savings and increase of service quality. Outsourcing became a visible trend when the development of Internet network and PCs allowed integration of IT systems between companies and external entities. Branches such as IT (information technology and telecommunication), logistics, consulting, accountancy and legal services, security and cleaning services are nearly fully outsourced. 


Outsourcing provides a company with:

lower operating costs and shorter lead time – the prices offered by companies specializing in a certain field are cheaper because the development costs and fix costs are divided. Specialized companies use human resources and infrastructure more efficiently.
Example: please compare the costs spent on creating your own software such as Linux or Windows with the price of this product in a store.

Higher quality of services – a company specializing in a certain field may spend most of its profit on the development within this field. A specialized company provides its service to many entities, so it can spend more on a field development keeping unit cost very low.

Example: please construct a mobile phone as small, aesthetic and modern as the one offered in a store. Will the final price be similar?

Higher flexibility and cost control – in case of outsourcing the companies sign an agreement with fixed rules. Your company can fully control the costs. In case of “in house” service (within your own company) nobody can ensure the optimal work within the agreed budget. Moreover, possession is for longer period of time and we are not able to confirm that a product bought today will be sufficient in 5 years when the company will be 10 times bigger or when the profit decreases three times.

Example: please compare the costs of employee redundancy with the change of security guard service in your store. What do you think, why big companies sold their holiday camps?

Your company uses unconsciously outsourcing probably every day, having an intuitive feeling that this is the optimal solution.

Most companies uses:
off-the-shelf software and finance – accounting program instead of creating their own ones
carrier and postal services instead of delivering posts themselves
banks instead of collecting money from the customers themselves and taking them to the company
telephone calls instead of sending letters and creating their own communication infrastructure
security guards and cleaning services instead of hiring employees
accountancy, consulting, legal, medical services instead of creating their own units
renting offices instead of buying, administer and maintain their own buildings
printing services instead of printing on their own
ready made food and catering services instead of cooking themselves

when you take the above examples into deep consideration, you will notice that outsourcing is the essence of modern economy. Some time ago most companies had their own accountancy departments and employed specialists, however specialized companies providing accountancy services proved to be more advantageous. Today nobody thinks about his own accountancy without having suitable finance and HR resources.

Why not use this experience and order such specialized company to take care of your accountancy? Wouldn't it be easier to control costs and reliability? If you do not need to have your own orchard to eat an apple why do you need your own accountancy department to run a small shop or a big supermarket? What is the aim of your company – sale or accountancy services


By outsourcing, you can achieve the following benefits:
optimizing management costs,
increasing security of your organization,
accepting more orders without limitation,
avoiding recruitment and training costs,
reducing contract management costs,
accessing specialists in many areas,
increasing flexibility.


Outsourcing, implementation process in five steps:
analyzing needs and listing out supporting functions which are the first to be outsourced,
planning the implementation process, including preparation of cooperation procedures,
implementation,
monitoring effectiveness of the outsourcing service,
modifying the outsourcing process.

Consulting Service