The most suitable spheres for outsourcing
Currently, the services of outsourced employees are used mainly by small-sized companies and newly established start-ups. The most popular spheres of outsourcing services are accounting, healthcare, IT industry, and customer support services. Not many small companies, also start-ups, can afford to spend money from their budget to hire large numbers of qualified employees to perform minor, but still important tasks. For efficient and rational use of human resources and money, many organizations use outsourcing specialists. Proper task assignment and well organised outsourcing can, in some cases, help to reduce costs by up to 1/3 of a company's operating expenses.
It is worth noting, however, that such ways of doing business are not acceptable to every company. In organisations that build trust with their clients, including those with well-known brands that have a very close relationship with the client, outsourcing services may not only be useless but can also cause great harm to the company's reputation. For example, when it relates to customer support, the outsourcing specialist may not be competent enough in relation to the services offered by the company for which he or she works, or may not have sufficient knowledge to solve the client's problem quickly and efficiently. This can undoubtedly damage the company's reputation, causing a decrease in the number of clients and a loss of profits.
Thus, regardless of the size, a company interested in outsourcing specialists should focus not only on the possibility of reducing their costs, but also take into account a number of additional factors, such as the importance of the tasks the outsourcer will perform and the necessary level of control over this specialist. This is the only way to cut costs without losing quality.
Is it possible to expect any guarantees from outsourcing personnel and what are the pitfalls in this area?
Depending on the size of the company, there will be an increase in business profits
Outsourcing specialists usually do the work for less and remain more productive.
A professional outsourcing employee is able to work efficiently and reduce the working year by more than 60 days.
Various activities, such as meetings, supervision of the office staff and constant communication with them, cost the employer a significant amount of money. Researchers have done studies and found that such activities cost at least $5 trillion annually for all companies in the world. The outsourcing employees carry out the tasks on their own.
Opportunity to focus on more important tasks
Working on minor tasks reduces staff productivity by at least 40%. If the best specialists are allowed to work on the main tasks and the secondary ones are delegated to outsourced employees, staff efficiency will be significantly improved.
This will help to monitor and correctly set wage level
The McKinsey statistics show that in most companies, at least 45% of the work done by employees can be delegated to outsourcing specialists. This, in turn, will allow to pay only for professionalism and experience.
Simplification of the reporting system and the ability to save on working conditions for staff according to strict legal requirements
Outsourced employees and freelancers, earn money for the tasks assigned to them. They are not required to pay extra rewards in the form of benefits and compensation. This approach is obviously beneficial for the company.
Outsourcing is beneficial for the industry
The most successful companies are outsourcing the production of their products. This reduces costs and increases profits.
One day outsourcing will be the main tool for effective company money management
The number of outsourcing professionals involved in a companies' operations has recently been increasing. With the development of technology and the possibility of working remotely, the number of possible tasks that a freelancer can perform is also increasing.
Artificial intelligence will be able to perform more types of tasks
Machine learning is becoming more advanced every day, and at the same time, artificial intelligence is becoming more advanced. Many processes can already be carried out without human involvement - for example, customer service.
How can a good understanding between developer and client be achieved?
One of the main problems in people-to-people cooperation is the complexity of communication. This is a well-known fact that is often discussed and considered as a direct obstacle for the development of business relationships. The leading outsourcing companies in East and South Asia may be a good example. They have built their reputation on providing high-quality and affordable outsourcing services, but some clients have trouble in establishing a business due to communication issues. Different cultures and languages can cause misunderstandings and break up profitable relationships.
In order to avoid such problems, it is worth to look for representatives of the outsourcing company in own country. In this case, the parties will be able to reach an agreement and take into account each other's requirements and conditions, without misunderstandings and miscommunication. Most developed outsourcing companies make great efforts to avoid communication problems with clients and actively train their staff to conduct successful negotiations.
It is important to understand that big money can be spent on a project, and in order for outsourcing specialists to carry out the tasks assigned to them in a high-quality manner and in full compliance with the client's requirements, it is necessary to keep in touch with them and coordinate activities. It is necessary to study carefully how, on what terms and with what requirements outsourcing services are offered. The planned project should be divided into several parts, in order to make it easier to monitor whether the terms and conditions of the project are met correctly and accurately.
The rapid development and use of outsourcing services is hard to ignore. Of course, this raises questions. What are the risks associated with outsourcing? Which areas are most suitable for outsourcing, etc.
Existing studies on the effectiveness of outsourcing services mainly have focused on the areas to which it is possible to apply outsourcing services optimally. And if there is a need for such services for the company, managers should familiarize themselves with this kind of researches.
Generally, companies can certainly get benefits from outsourcing services. The only important thing is to take into account the specifics of such services and correctly identify the possible benefits and risks of its use.