Outsourcing is an innovative management technique, which involves the transfer to third parties of certain complementary processes that are not part of the main line of business, allowing the concentration of efforts in the essential activities to obtain competitiveness and tangible results.
This technique is based on a management process that involves structural changes of the company in fundamental aspects such as culture, procedures, systems, controls, and technology.
Outsourcing encompasses several areas, although currently, it is more common in areas of human resources in payroll management, telemarketing, graphic design, accounting, customer service, engineering, content generation, and manufacturing. That usually includes specialties different from all those fundamental functions of the company or organization that contracts.
Types of outsourcing
Among the types of outsourcing that exist are:
1) In-house, this particularly occurs within the establishment of the company that hires this service.
2) Co-sourcing is that the contracted offers a certainly added value to their client or contractor, for example when sharing the risk.
3) Offshoring or off-shoring occurs when services are contracted to third parties that are located in other countries but their costs are lower due to labor legislation, among other aspects.
4) The collaborative applied to the use of the capacity of those operations that produce articles or provide a service to a third party.
5) Off-site, this happens when outsourcing is done in the same company that provides the service or contract.
Advantage and Disadvantages of OutsourcingAdvantage of Outsourcing:
1) The economic development of the productive sector.
2) Specialization by tasks depending on the services provided.
3) The responsibility of the service contracting companies when establishing adequate quality controls through criteria and evaluation systems established jointly with the providers of these services.
4) A new approach to the cost system is inevitable to be able to evaluate the reduction of costs in outsourced processes.
5) Greater training and professional development for employees within the service provider companies, as well as, technology transfers for the employees of the contracting companies and/or for the contractor companies.
6) A decrease in waste.
7) The revaluation of human talents.
8) The agility in decisions is reinforced with outsourcing.
9) Use of physical spaces and revaluation of installed resources (machinery, equipment, among others) to optimize the use.
Disadvantages of Outsourcing:
1) Loss of critical skills for the fulfillment of the business objective or development of skills that can incorrectly be classified as essential.
2) Loss of control over the quality of the services contracted.
3) In case of not carrying out market analyzes of service providers, outsourcing can become the direct path to failure.
4) If the decision to outsource is not well-founded within the company, the mere idea of applying it could be the cause of widespread chaos at all levels of the organization.
5) Errors cannot be admitted when choosing an area to outsource.
6) Not all employees who lost their position within the organization may be absorbed by the companies providing services.
Areas and/or processes of your company that can be outsourced
You should also bear in mind that not all areas and/or processes of your company can be outsourced. The areas that can be outsourced are:
Financial and accounting system: In these areas you need highly specialized personnel who know how to work with data, who knows all kinds of related legislation.
Marketing: This area is usually outsourced because there are companies specialized in this activity, with highly qualified personnel, besides that the costs are reduced when you have a team of suppliers that is in charge of marketing your company. Human Resources: Everything related to payroll, for example. Administrative system Secondary activities: Many companies usually leave those secondary activities that are not part of the company's main actions in the hands of outsourcing. An example of this is cleaning, security, the supply of stationery, the handling of events, among many others. Production and logistics .
As for the areas of the company that their processes should not be outsourced, they are:
1) The administration of strategic planning
2) The Treasury
3) The control of suppliers
4) Quality management
5) Customer service
Outsourcing certain sectors of a company is a strategy that can have an optimum cost-benefit for the company, but it also has its disadvantages, which were mentioned above. But the real question is how to manage the motivation of the outsourced team if the link is not the same as with a professional directly hired, who works in the company?
If you want to have a competitive company, then it is better to know how to manage the motivation of outsourced equipment in the same way you treat the internal team. This is a fundamental practice of human resources capable of making employees feel more committed and satisfied. The result? Increase in productivity and overcoming goals.
This happens because motivated employees feel part of the company and, thus, have a better performance to achieve the objectives of the organization. Then, I will give you 5 tips on how to motivate your outsourcing team:
Daily, he values the small and great achievements of employees. Recognizing hard work through simple attitudes, such as email praise or conversation, outsourced employees will feel part of the team. Never stop recognizing the positive attitudes and good ideas of employees. In this way, they will feel motivated to continue in the company and to carry out the work.
If you outsource to the team, it is fundamental to pay a fair value to the professionals, according to their qualifications. You can also grant some benefits to employees, such as bonuses and commissions, which they receive according to the results achieved during the month.
Communicate business objectives
For the motivation of the outsourced team, make clear the objectives of your business to all employees. This is a way to engage professionals and show that they play an important role in the success of the company. This measure is a way to boost responsibility at
Train the teamBy encouraging the motivation of the outsourced team, it is important to see employee training as an investment, rather than an unnecessary expense. The training allows the team to know aspects of the area and the business, such as challenges and operational organizations, in addition to promoting trust among employees, which improves their performance.
At first glance, it may seem like a minor league problem because the most important thing to understand is to speak the same language (probably in English), but also skin color, race, nationality, among others. But it is not enough to have an adequate command of English, and the specific aspects of the company's culture can have a great impact on the work process. That's why as a team leader you need to talk with your hiring team and your subcontracting team to eliminate these cultural discrepancies
Implementing outsourcing is a task that requires great care because it involves including more people in your project. And although it seems that it is a complicated process and that many people may feel that it is not worth the effort, the truth is that it is the opposite, there are many benefits.
Each company should be able to carry out outsourcing to improve its processes and have a priority focus on its main objective. The key to everything in the business world is to pay attention to the big and small details, outsourcing is no exception.
Show All Articles