Why use outsourcing service?
24th, January, 2018
Why use outsourcing service?
In the challenging economic context, the degree of competition between businesses is increasing intensively, which requires the optimization of the operation of the company. In reality, there are many ways for us to solve these problems effectively. And in the present context, one of the most popular methods is outsourcing services for the sub-array of the companies. We can use outsourcing services in many aspects such as Human Resources, IT… So why we use the outsourcing services and why should we all use it? The outsourcing services have many advantages that we should know, and then we should use it for our companies.
- Professional and enhancing productivity: This must be the number one reason for us to use outsourcing services because the suppliers of the outsourcing services are professional organizations for the aspects we need, so we need to have proper system training for all the staff. They also have a monitoring system about the quality of staff-work and ensure for the services process. The services they provided are always high- professionalism.
- Consumption savings: The cost of outsourcing are often cheaper than the one for building a work-structure of companies. We will have to pay for personal income tax for staff, not including many kinds of insurance. Many businesses embrace outsourcing as a way to realize cost savings or better cost control over the outsourced function. Companies usually outsource to a vendor that specializes in a given function and performs that function more efficiently than the company could, simply by virtue of transaction volume.
- Flexibility: Using outsourcing services helps us flexible to arrange the staff location, which avoiding the shortages of staff on short-term projects. Temporary staff will be provided when businesses need it. For examples, the temporary staff and technical experts will be added to support the new projects or the unexpected consignments in the determined period. The other thing is that still others outsource to achieve greater financial flexibility since the sale of assets that formerly supported an outsourced function can improve a company’s cash flow. A possible pitfall in this reasoning is that many vendors demand long-term contracts, which may reduce flexibility.
- Focusing the primary value of the companies: The sub-array and short-term project using outsourcing services will help us focus on our human resources and con consumption for our main activities of companies. It means that by delegating non- essential and specialized functions, we can focus time, money and other resources on the core functions of your business.
- Time savings: We will reduce our time for finding employers when we outsource services. And we know the labor of outsourcing services are highly skilled, so we don’t need to worry about the quality of them. Administrative burdens related to human resources management can take up a lot of time and expense, so using outsourcing services helps us transfer these work and businesses can optimize and utilize internal human resources to main activities. We have the expertise to manage administrative functions such as finding and choosing staff, paying the wage or many things involving subsidize and tax. Therefore, a core thing the businesses have to do is to manage employees’ contributions to the company.
- Risk reduction: Using temporary staff during busy times will reduce the pressure and prevent slack and overload for others staff, it will also reduce the absence and can claim compensation of labor in a long time.
From many above benefits of outsourcing services, I think companies and businesses should consider outsourcing services as the primary strategy to navigate itself through expected economic turbulence. Let’s use outsourcing services in our work and achieve the best results that we have expected.
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