Outsourcing is the transfer of a part of business processes or individual work tasks to external contractors. In simple terms, one company hires another or a private contractor to take over some cases. For example, they kept accounting records, were responsible for social networks and communication with customers, or delivered goods to stores.
Usually, tasks that can be delegated are outsourced, for example, a company sews underwear, but does not keep models and a photographer on staff. When the collection is ready, they hire an outsourcing agency that takes photos for them and makes a catalogue.
What are the advantages of outsourcing
If we talk about the advantages of outsourcing, then the most important advantage is financial savings.
Advantages:
- Reduction of personnel costs. These are savings on salaries, taxes, contributions, vacation pay and various compensations, as well as on workplaces and equipment.
- Reducing the risks of additional expenses during layoffs. When a company is forced to cut staff, it is obliged to pay severance payments.
- Reducing the burden on their employees.
- The ability to quickly close the issue of hiring. It is not always possible to find a suitable employee quickly, and tasks need to be done by someone.
Also, the undoubted advantage of outsourcing is the search for a specialist in this field. If you Find your Community Manager, then you immediately turn to the one for whom this task is a profile or favourite. This excludes cases of non-receipt of an employee without expert knowledge.
But this activity also has drawbacks.
Disadvantages
Outsourcing has some risks. Performers can poorly do the work and even ruin the reputation of the customer. But to eliminate this risk, it is enough to choose high-quality agencies that are represented, for example, LinkCM.
Risks also include the fact that outsourced performers may receive confidential information. But if you sign a non-disclosure agreement, you can avoid this risk.
In general, you can transfer anything that is not an important part of the business, does not contain confidential information and does not imply a danger to the reputation of the company.