Outsourcing

Outsourcing is an administrative strategy, through which a company delegates certain activities to highly specialized companies.

Types of Outsourcing

Total Outsourcing – Total outsourcing involves the transfer of equipment, staff, networks, operations, and administrative operations to the contractor.

Partial Outsourcing – This form of outsourcing only involves some of the elements previously mentioned.

Why do businesses choose outsourcing?

Reduction and control of operational and administrative costs
To avoid the assignment of company resources in areas not desired
To efficiently manage complicated functions
To better maintain company focus
Better access to world-class capabilities
Accelerate reengineering benefits
To divide risks among suppliers and service providers
To allocate resources for other purposes
For a deeper and more direct relation between client and supplier.

Benefits of Outsourcing

Outsourcing is a useful tool in the growth of companies for the following reasons:

It is more economical
Reduction and control of operational and administrative costs
Concentration of business and capital funds available
Access to cash
Facilitated handling of difficult or out of control functions
Access to highly trained staff
Minimization of investment and financial risk
Greater organizational flexibility
Better control and security
Increase in competitiveness
Reduction of costs
Use of new technologies
Faster deployment of new developments, applications, and improved processes