Outsourcing: Introduction, Benefits, Questions

Almost all the top companies in the world outsource their work. So what does outsourcing mean and how does it benefit a company? Here’s more on outsourcing.

Introduction

Outsourcing is when a company hires another company to perform certain functions so that it is able to focus on its core activities. Wikipedia defines it as “contracting to third parties.” Although the term has become synonomous with the transfer of labor/work overseas, outsourcing is actually not geographically defined. You can outsource work to any company, even if its in the vicinity.

Some of the benefits of outsourcing include Lowe labour costs, fewer regulations, reduced overheads, flexibility and more importantly allows a company to focus on its core competencies.

Using Online Outsourcing Services Can Make Your Job Easy

You must have definitely heard that lot of big companies outsources work in order to maximize their revenue and keep their expenses under control. But what if you wanted to outsource some of your tasks?

Do you think it is easy to get access to specialized skills and services, and save on money and time?

With so many online outsourcing services out there, you can definitely take their help to accomplish more.

Outsourcing for Small Businesses

Sometimes in business, as skilled as you may be, there are things that you are unable to do.

A customer will come through with a very specific brief and, although you will be able to do most of it, there may be a part of the job that poses you problems and prevents you from completing the task. In this respect, it may often seem that you will have to turn down the opportunity.

But it is not necessarily the case.

With the Internet at your fingertips, you have ready access to a skills base that means you can complete on that job even if some of the work is outside your own remit. Welcome to outsourcing via the Internet.

Non-Internet Situations

Thinking of it as a non-Internet situation for the moment, imagine that you were an interior redecorator who specialized in hanging wallpaper, painting and plastering.

It may just be that a job comes through that involves all of that plus laying a hardwood floor. You’re good, but you’re not experienced in laying down floors. With the use of some contacts, you could pay for the services of a person who is capable and experienced in that part of the job. By paying them to take those duties on, you can accept the job and move forward.

To Conclude

One of the bigger challenges that self-employed people and small businesses face, is understanding how outsourcing can benefit them. But if you really want to concentrate more on your core business, then you have to outsource because you can’t run a growing business on your own. Besides, if you are short of time and don’t have the skills to accomplish certain tasks, you can greatly benefit by outsourcing which can give you greater efficiency and effectiveness.

There are many workers out there who do business via the Internet, and to contact them all you need to do is pick up the phone. If you cannot complete a job all by yourself, but it will pay well, there is no need to give up. Just log on, find a contact and get the job done.

You will also get the advantage of working with countries that operate in a different time zone, which means someone is still working on your job as you sleep.

Academic Questions

Academic questions, projects, assignments on Outsourcing.

Q. ‘Organisations should be held responsible for bad practices by companies they have outsourced to’.

Q. What are the key issues in outsourcing? Who are the key stakeholders in outsourcing?

Q. Create a corporate plan regarding the future trading plans of a functional company. You will decide if the company should outsource the production of their product from the UK to the Philippines.

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