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Cost Optimization with Outsourcing

Transfer of functions to a third party

This is the essence of outsourcing. This service involves the delegation of the conduct of any business processes to another firm that is an expert in the industry. The most frequently reported are:

  • software support;
  • bookkeeping;
  • maintenance and customer service;
  • management.

This approach to the organization of work allows you to concentrate on solving the main tasks. In fact, outsourcing is a way to optimize the costs of providing directions accompanying the main activity of the company.
Variety of delegation of authority
Various directions in the field of activity of an enterprise can be transferred to outsourcing. According to this principle, there are several types of services:

 

Industrial. Part of the process for the manufacture or clearance of goods (and the cost of this work) is transferred to external execution.
Outsourcing business activities. Processes that are not related to the main activity of the enterprise are delegated. A striking example is accounting outsourcing.
IT. The information systems of the company are serviced by organizations that are engaged in software and technical support. Among the most frequent processes that are transmitted to the external execution: the creation of a site, support or development of enterprise software, maintenance of computers and office equipment.
When delegating support functions aimed at supporting a business, it is imperative that you implement special KPIs. These parameters allow you to assess and monitor the performance of an outsourcing company. Correct metrics help improve the quality of interaction between the client and the contractor.

Benefits of outsourcing

The main objective of this service is to move out of the business of non-core and highly specialized functions of the enterprise, reducing the cost of their implementation. Therefore, among the advantages of transferring certain directions to an outside contractor it is worth noting:

finance savings. Transaction costs are reduced or can be transformed into a variable value, depending on the needs of the client's company;
production optimization. When transferring secondary processes to outsourcing, it is possible to concentrate all forces on the main activity;
reliability. It is not always possible to maintain a staff of highly qualified specialists. In firms providing outsourcing services, people competent in various fields work. The client's enterprise is provided with a comprehensive comprehensive approach to solving a particular issue.
As examples in world practice show, the transfer of certain processes to external execution really justifies itself, as a way to reduce the cost of doing business. A striking example is IKEA. It almost does not have its own production, but cooperates with hundreds of proven suppliers and logistics companies around the world. As you can see, the right outsourcing not only helped the company to reduce the cost of manufacturing products, but also made it possible to send forces to the development of a network of stores around the world without being distracted by other processes.

 

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