Not yet registered? Create a OverBlog!

Create my blog

What is outsourcing and how does it benefit a business?

When a person or company subcontracts a job to another person or company, they have outsourced. Usually, this job is contracted out for cheaper, which gives the outsourcing company many benefits in addition to revenue. This has modified and redefined business in every facet from the larger corporations, to limited liability companies, entrepreneurs and even the small business

Small business outsourcing

Once the entrepreneur or small business outsources jobs, they have less of a demand to bear the load all by themselves. This frees up time and allows for other opportunities to expand business like promotion, marketing, or conducting business online. As an entrepreneur or small business, every dollar saved is more crucial, since funds are not as expendable as the corporations'. HR outsourcing Another way to lower costs of service, save abundantly on time and improve service levels overall is through HR outsourcing. Although popular with corporations, outsourcing HR activities benefits the small business or startup business more since time and resources do not have to be invested in interviewing, hiring and placement of new HR representatives. There are many different HR outsourcing companies offering competitive rates and comprehensible turn around time.

Outsourcing jobs for corporations

Outsourcing business benefits a corporation by allowing them to receive the same quality work they would as if the corporation hires internally, but for lower productions costs. The larger the company, the bigger the profit from outsourcing, since management as well as day-to-day operations are externalised. Cutting off of costs After the externalisation is created, other costs can be cut from the supplier company such as renting a smaller building since you will be able to save on workspace, for example. An offshore outsourcing company usually sees a better turnaround to the bottom line, which boosts quarterly and annual figures. Information technology outsourcing More popular than customer service outsourcing for corporations, is Information technology outsourcing. On the cost of purchasing IT equipment, computer technology, servers and software alone, the corporation can save tens of thousands of dollars quarterly. IT outsourcing companies provide other benefits like reduced time responding to employee desktop errors, end user support levels increased and improved system reliability. Minimises fear of lawsuits Studies show many businesses may avoid downsizing as needed due to the fear of employee lawsuits. Outsourcing jobs minimise this fear, and allow the supplier company to downsize (or upsize) when beneficial without the consequence of legal action. Time is money, and outsourced services do an excellent job of saving your company a great deal of both.

Same category articles HR & enterprise

Leadership vs management: The key differences

Leadership vs management: The key differences

Leadership and management are interchangeable, but do not mean the same. Leadership involves leading and inspiring, whereas management is the process of planning, leading, organising, implementing and controlling. This article provides you with an overview of the key differences between leadership and management.
How to conduct a competency-based interview

How to conduct a competency-based interview

Interview processes are always a challenge for both the employer and for the job seeker. One interview methodology which is rapidly gaining popularity is the competency-based interview. This essentially involves a series of structured questions which allow for a fair examination of the competencies of all candidates in an even manner. To find out how to conduct a competency-based interview, read this article.
What is involved in an HR audit?

What is involved in an HR audit?

Employees represent one of the most important assets in an organisation. A HR department is entrusted to secure the needed workforce, to train and to develop employees. It is also involved in the orientation of employees and also in terminations among other functions. HR audit helps to evaluate the competency of an organisations human resource department.
How to optimise your filing system

How to optimise your filing system

Filing systems are found in almost every business and they can be electronic or paper-based. They must be set up, maintained and managed correctly in order to ensure the efficient storage and retrieval of information. This article will provide some tips and advice on the best ways in which to optimise a paper-based or electronic filing system.