Outsourcing

Outsourcing Concept

Outsourcing is a way to raise values to a business converting an internal costs centre into an external service through subcontracting, allowing the release of organization’s resources and managers to concentrate their attentions in the business areas of high strategy significance.

The two main advantages of outsourcing are:

  • the release of resources (including the attention of the own managers) to focus in the organization’s central business;
  • the access to competences of organizations highly specialized and that benefit from important wide economies and experience economies which allows, on one side, the introduction of significant improvements in the processes under which are made the outsourcing and, on the other hand, the reductions of operational costs.

Processes to which Outsourcing should be applied: The processes to which Outsourcing should be applied are processes of low strategic significance for the business and simultaneously of low risk. Thus, the processes that the Outsourcing is most frequently applies are accountancy, payroll, economic and financial consulting, strategic consulting, debt collection services, merchandise transport, juridical consulting, recruitment and selection of personnel, training, equipment maintenance, cleaning services, market searches, publicity, among others.

Strategic Outsourcing

One of the Outsourcing variations is the Strategic Outsourcing that corresponds to the hiring in the exterior of one or more steps in the operational chain, such as the product design, the investigation and development, the components manufacturing, or the commercialization of products through the establishment of cooperation relations.

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