Outsourcing

Outsourcing is the involvement of a specialized organization to solve certain core tasks. For example, there are two companies, one company does certain work in its main activity, but it gives some part of the services or work to another company. To this end, these companies enter into an agreement among themselves for the performance of certain services (works) or, in another way, an outsourcing agreement.
Outsourcing is the delegation of some functionality to a third-party organization, of course, when you have a small company and you do not want to expand your staff for many reasons, you attract these employees from outside, with certain standard functions. By standard functions, I mean legal and accounting support, as well as some cleaning services, marketing, financial analytics, system operator services, etc.

   Outsourcing is beneficial in a time of crisis for an enterprise, since it allows you to significantly reduce costs and somehow optimize the costs of maintaining current activities and even transfer part of the costs from fixed to variable.
To find out what is more profitable for you, you need to calculate everything correctly:

 1. To begin with, you need to correctly allocate all the costs of maintaining internal functions. Here it is necessary to calculate not only the salaries of employees who carry out this function, but to correctly allocate all fixed costs. Rent, utility payments, general business expenses (purchase of stationery, computers, etc.), accounting services, personnel services, and so on.

 2. You need to look at the cost of outsourcing, and here you are faced with such a problem that the cost varies significantly and it depends, of course, on the quality of services too. Here you come to a very important conclusion, if you cannot formulate very clearly the requirements for the results of outsourcing activities or you cannot formulate very clearly the metrics by which you will measure their quality, the quality of their work, then outsourcing will not be beneficial for you.

   Outsourcing something when you don't know what you will ultimately require is dangerous because you can basically lose control over some areas of your activity. You need, at a minimum, to figure out what requirements you have for the process and for the result of this process. After that, you choose a suitable company that will provide these services to you and agree on its cost. For one thing, don't forget to check this company for financial strength and don't hesitate to ask about their reviews about their existing clients. Again, if they have your competitors among their existing customers and your commercial information is important enough to you, please think about information security, that your data may become the property of competitors and this may cost you money.

   Competent outsourcing saves a lot of energy for managers, and reduces the burden on the managerial link, concentrates the attention of the manager on his main activity, but do not forget that as a result you may not get the quality of services that you dreamed of, while you will pay money for it.

    Outsourcing is the involvement of a specialized organization to solve certain core tasks. For example, there are two companies, one company does certain work in its main activity, but it gives some part of the services or work to another company. To this end, these companies enter into an agreement among themselves for the performance of certain services (works) or, in another way, an outsourcing agreement.
    Outsourcing is the delegation of some functionality to a third-party organization, of course, when you have a small company and you do not want to expand your staff for many reasons, you attract these employees from outside, with certain standard functions. By standard functions, I mean legal and accounting support, as well as some cleaning services, marketing, financial analytics, system operator services, etc.

       Outsourcing is beneficial in a time of crisis for an enterprise, since it allows you to significantly reduce costs and somehow optimize the costs of maintaining current activities and even transfer part of the costs from fixed to variable.
    To find out what is more profitable for you, you need to calculate everything correctly:

     1. To begin with, you need to correctly allocate all the costs of maintaining internal functions. Here it is necessary to calculate not only the salaries of employees who carry out this function, but to correctly allocate all fixed costs. Rent, utility payments, general business expenses (purchase of stationery, computers, etc.), accounting services, personnel services, and so on.

     2. You need to look at the cost of outsourcing, and here you are faced with such a problem that the cost varies significantly and it depends, of course, on the quality of services too. Here you come to a very important conclusion, if you cannot formulate very clearly the requirements for the results of outsourcing activities or you cannot formulate very clearly the metrics by which you will measure their quality, the quality of their work, then outsourcing will not be beneficial for you.

       Outsourcing something when you don't know what you will ultimately require is dangerous because you can basically lose control over some areas of your activity. You need, at a minimum, to figure out what requirements you have for the process and for the result of this process. After that, you choose a suitable company that will provide these services to you and agree on its cost. For one thing, don't forget to check this company for financial strength and don't hesitate to ask about their reviews about their existing clients. Again, if they have your competitors among their existing customers and your commercial information is important enough to you, please think about information security, that your data may become the property of competitors and this may cost you money.

       Competent outsourcing saves a lot of energy for managers, and reduces the burden on the managerial link, concentrates the attention of the manager on his main activity, but do not forget that as a result you may not get the quality of services that you dreamed of, while you will pay money for it.

     
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