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Outsourcing in the workplace

What is outsourcing?

The process of outsourcing involves an organisation hiring a third party to carry out certain duties or offer specific services on their behalf. The practice of outsourcing particular jobs and services has become more popular over time as businesses have realised its advantages and, outsourcing itself, has given rise to a huge freelancing market.

How does outsourcing work?

When a company outsources a task, it enlists the assistance of a third party, which might be another company that specialises in that particular service or a freelancer working alone. Because the hired company or freelancer already has its structures and strategies in place, the employing organisation will keep costs down. For instance, the majority of banks use outsourcing when employing contact centre workers, cleaners, drivers, etc. As a result, every person hired through outsourcing serves the organisation's needs but does not immediately gain from it because they are not the company's genuine workers. Additionally, outsourcing compensates for any resource deficiencies that companies may have had prior to outsourcing by enabling them to utilise external resources as much as they like.

Benefits of outsourcing

Although a company should prioritise cost reductions, this is not the main justification for using outsourcing. The majority of businesses choose to concentrate on their core competencies. For instance, an entrepreneur is busy running the day-to-day activities of her business and has no time to cultivate her social media presence which is quite consuming. Doing both may restrict the development and productivity of her company. So, outsourcing of the social media activities is an ideal solution. In addition to reducing the expense of hiring a full-time team, outsourcing might enable businesses concentrate on their core competencies. Even while there are benefits to outsourcing, it's crucial to understand that not all work can be done thus.

Here are a few drawbacks of outsourcing:

  • Bringing on so many outsiders might result in a security risk.

  • Contract signing may result in delays in time and effort.

  • Project delays and incomplete projects may result from poor communication.

  • Forsaking project control.

Examples of areas that can be outsourced

  • Call Centres

  • Logistics

  • Advertising

  • Cleaning

  • Designing

  • IT specialists, such as software engineers etc...

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