To Outsource or Not To Outsource

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Knowing the right time to outsource your work
Nowadays, more and more companies tend to outsource their non-core tasks and any activities that are time consuming and monotonous in nature. Outsourcing is considered a strategic tool that can enhance the productivity level and help to effectively motivate employees. Tasks that are not targeted in securing a differential advantage and increasing the company’s profit are outsourced. Companies retain those that have vital effects on the company such as decision making processes and other activities that require close attention and monitoring.

But before embracing the convenience of outsourcing, a company must consider the benefits and the possible drawbacks when it outsources its works. Determining what needs must be prioritized help in figuring out whether they needed to outsource or not. Also certain benefits can be achieved when they combine in-house and outsourcing. Different factors are considered by a company in deciding whether it will resort to outsourcing or not.

Availability of staff and cost of training
Technology, nowadays, is getting more and more complicated. Every week, new applications or systems are being developed and launched in the market. You need to consider how much time it will take for your staff to become well acquainted with these innovations. When the cost of training new and old staff is too high, you may consider outsourcing your tasks.

New and different technology
Different companies and institutions use different software and systems to organize and systemize their documents and information in their work area. When the systems used by a company become obsolete due to innovations that occur in technology, re-training new and old staff becomes necessary. In this case, in order to get an array of well- trained and competitive manpower, you need to acquaint your staff with the new technology or hire new staff workers who are proficient in using and maintaining the new software. Most of the times, resident employees are not that updated with the latest innovations and software. They might not be that informed or may know nothing at all, so training is really necessary. But as we all know, training is very costly. When training seems to be very expensive and consumes too much time, many companies consider outsourcing. This can help cut down time and cost consumed in training.

Convenience
When it is more convenient for a company to outsource instead of having in-house employees do the necessary paper works and business processes needed, maybe it’s time for it to outsource. There are many reasons why businesses chose to outsource their activities. One is the space in the work area. When hiring and training additional staff makes the work area more crowded and it’s costly to rent additional space to accommodate more employees, companies tend to outsource routine tasks such as billing, data maintenance, and other back-office work.

Another is the maintenance of the specialized area. For temporary activities that occur only in cycles, it is impractical and expensive to have a regular employee to do it. Therefore, in order to save up, companies consider outsourcing these activities when they occur in the workplace.

Quality of Manpower
Skills and knowledge are the main assets of a company. Therefore, the company must secure an array of highly specialized and skilled employees needed to perform certain tasks in the company. This allows the company to gain an advantage over its competitors. But first, the company must consider the cost in incurring these people. When the needed skills is available and can be acquired at a minimal cost, in-house staff is much preferred. This is due to the fact that the productivity and performance of the employees can be monitored. Moreover, the company has more control over an in-house staff than an outsourcing team.

But, when the amount of labor and acquisition over new and skilled manpower is too high and there is insufficient manpower available in the area, the outsourcing is much preferred. Highly skilled and professional manpower can be obtained by companies that chose to outsource at a lower cost compared to maintaining in-house manpower.

When you want to focus on your key competencies
Paper works and other routine jobs consume too much time. Aside from this, employees fail to do other activities relevant to the business because their focus was targeted on non-core activities. Moreover, these jobs are monotonous in nature and employees often experience boredom in performing these tasks. When your paper works and other non-core activities hinder you to perform important tasks relevant in the company, maybe it’s time for you to consider outsourcing. Outsourcing non-core tasks relieves your employees from doing routine jobs. Moreover, your employees can now focus on other activities that will help then create and develop their own specialization.

Focus on speed and advancement
Time in business is considered as money. Therefore, in order to be able to profit from your investments, services, and products, you must consider your rate of turnover. Likewise, when your employee consumes too much time in performing a single task, they are hindered to perform other tasks that need to be attended to. In this regard, consider how long your in-house employee performs a specific task. If outsourcing your non-core activities can shorten the length of time needed to fulfill tasks such as data processing and document management, then you might as well outsource them. Aside from cutting the time needed to perform such tasks, you are also assured that these activities have been performed by professionals. This means getting quality service without having to pay much.

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