Outsourcing involves. Outsourcing - what is it in simple words? All the most successful companies in the world use outsourcing services. Production and management types of outsourcing

To solve production issues, there is no need to recruit highly specialized specialists or train them in their specifics specific activities. It’s easier to hire highly qualified specialists who will do all the work for a fee. In order to save money, enterprises began to enter into contracts with third-party organizations, having appreciated what outsourcing company.

What is outsourcing

The meaning of the word outsourcing must be found in English language. Outsourcing is a kind of abbreviation consisting of three words outer + source + using, which literally means “using an external resource.” In a broad sense, outsourcing activities involve the transfer of certain work in any area. third party organization. For this purpose, a contract must be concluded.

You should not confuse outsourcing with one-time support or occasional work, when you also turn to the services of third-party organizations. Contracts with outsourcing companies are concluded mainly for a period of at least one year and help the smooth operation of the enterprise. In this way, the organization can not only save cash, but also to direct financial and human resources for the development of core activities. More often, financial, accounting, transport, IT services and other administrative functions of enterprises are outsourced.

Signs and distinctive features

Outsourcing companies have a narrow specialization, which allows them to complete tasks at a high-quality level in as soon as possible. Unlike technical support or freelance maintenance, outsourcing has its own features:

  • concluding an agreement to transfer certain functions to a third party;
  • the company is transferred to non-core operations that are not related to the main activity, but are mandatory for the full functioning of production;
  • business processes are transferred, not those related to product production;
  • long-term cooperation.

Types of outsourcing

At the moment, there is no single approach that would allow us to determine the main types of outsourcing activities. The list below reflects a more in-depth approach to classification according to a specific set of characteristics:

  1. by type of transferred functions;
  2. by type of activity;
  3. by validity period;
  4. by ownership of production assets;
  5. by personnel affiliation;
  6. by the volume of work performed;
  7. by number of suppliers;
  8. on a territorial basis;
  9. by type of product supplied;
  10. by volume and complexity of information services;
  11. on the approach to the development of software outsourcing.

By type of transferred values

On modern stage There are three main types of outsourcing, which are based on the type of transferred values:

  • operating. A common type, the essence of which is the transfer of certain types of operating activities on the basis of a subcontract agreement. These include transportation, storage, and sales of manufactured products.
  • resourceful. Its main idea is to attract additional financial, human resources or fixed assets, while outsourcing is considered a targeted strategy of the organization.
  • functional. Its purpose is to transfer certain functions, including planning, accounting, and economic activities.

By type of transfer of functions

The following types of outsourcing can be distinguished depending on the type of transfer of functions:

  • full. It is not functions that are transferred to a third party company, but staff, assets and production processes (for example, finance or IT services);
  • selective. Used in the production of expensive products. It consists of transferring a specific set of functions to an outsourcing company;
  • improved. Applicable well-known companies when some functions are transferred to outsourcers, while the company itself remains the distributor;
  • intermediate. The list of functions is carried out by a third, well-established party;
  • reorganization. Its purpose is to create a new enterprise, with personnel and assets transferred to the new company rather than to the service provider.
  • joint. In one case, according to the agreement, the parties are partners, and in the second, it implies signing an agreement simultaneously with several organizations to minimize possible risks.

Based on the division of labor

Depending on the benefits obtained as a result of the division of labor, the following types of outsourcing can be distinguished:

  • geographical. The main production is transferred to other countries of the world, where the cost of paying workers is lower, resulting in significant savings financial resources.
  • specialized. The relocation of entire production or a specific function occurs due to the uniqueness of the new location.

Outsourcing services

Depending on what type of activity or services the company is engaged in, the following types of outsourcing can be distinguished:

  1. by type of assets involved. There are services of a material and intangible (intellectual) nature.
  2. by type and quality of work. Here services are distinguished based on the use of human labor (low or highly qualified and professional) or using special or complex equipment (automated, standard, specific).
  3. by the role of the process in the value chain. A distinction is made between outsourcing of core business processes and infrastructure.

Business process outsourcing

One type of outsourcing activity can be called business process outsourcing, which represents closer cooperation between an enterprise and a third-party service provider. Non-core functions are transferred to the outsourcing organization, which represent a closed cycle. All these services are not basic for the enterprise, or, as they can also be called, business-forming. These include:

  • accounting and financial accounting;
  • personnel Management;
  • logistics services;
  • Advertising activity;
  • marketing;
  • legal services.

Financial and management accounting

If we turn to practice, we can see that part of the processes associated with the accounting activities of an enterprise is often transferred to financial outsourcing. This may be accounting for accounts payable and receivable or accruing wages. Some business leaders are taking more radical steps - transferring all financial, accounting and management accounting to outsourcing companies. Financial services provided to third parties include:

  • preparation of financial statements;
  • formation of accounting and tax base;
  • audit financial activities;
  • inventory;
  • compilation tax returns;
  • informing about changes in legislation;
  • support of inspections.

Legal services

The essence of legal outsourcing is that an organization transfers all legal support to a company that specializes directly in this field of activity. The benefit of such cooperation is that the client is offered a diverse range of legal services, even of the narrowest specificity, which is difficult to achieve with a specific staff of lawyers.

On the other hand, there is always the possibility that the confidentiality of information may be compromised. In addition, a deep analysis of the situation does not always occur. For this reason, the ideal form is considered to be combining the work of one’s own legal department, which would deal with current issues of the organization, and an outsourcing company, to which the functions of in-depth analysis of issues would be transferred.

Personnel outsourcing

The essence of the concept is that the functions of the organization’s personnel service are transferred to a third-party company. The main difference between personnel outsourcing and leasing and rental (they are often combined into one definition - personnel outstaffing) is that the company orders the execution of services, rather than recruiting staff to perform it. In practice, outsourcing activities are distinguished:

  • working personnel;
  • warehouse personnel;
  • construction personnel;
  • production staff;
  • sales personnel.

Outsourcing of temporary staff is beneficial primarily because the company does not need to contact recruitment agencies with a request to select people to perform certain types of work. At the same time, there is no need to purchase equipment and organize a workplace, bonuses, vacation pay or salaries to employees. There is no need to provide employees with a social package and other privileges that employees of the enterprise have. This helps to avoid large expenses, saving large financial resources.

Logistics services

The essence of the process is that logistics operations are transferred to a third party to reduce transport costs, expenses for maintaining warehouses, etc. One or more companies can be selected for cooperation. It is advisable to completely outsource logistics functions to a company if you need comprehensive services. Otherwise, to save money, it is recommended to combine the activities of your own logistics service and those brought in from outside.

The most common outsourcing logistics services include:

  • customs clearance;
  • transport and forwarding services;
  • procurement coordination;
  • warehouse services;
  • packaging of goods.

Telemarketing

Distinguish between outbound and inbound telemarketing. In the first case, a telephone survey is carried out and goods are sold. With incoming telemarketing, it is aimed at processing orders from potential buyers and litter of reviews about the company’s activities. In Russia, there is a slightly different terminology: outbound refers to telemarketing itself, and inbound telemarketing refers to call centers. In order to reduce the cost of services, they are based in provinces or countries with cheap labor.

Outsourced telemarketing is important tool, which helps increase sales because there is a live dialogue between the seller and potential buyer via various communication channels. You can find out how your employees work and what customers think about your company’s activities by using:

  • automatic notification;
  • updating databases;
  • informing;
  • marketing research;
  • survey or questionnaire;
  • looking for new clients;
  • telesales;
  • work with accounts receivable;
  • cold calls.

Industrial outsourcing

Production or industrial outsourcing is beneficial to an enterprise when production on our own gets expensive. This entails an increase in the price of manufactured products, which ultimately can affect sales growth. In this case, the client can transfer to the outsourcing company both part of its production cycle and the entire production from the initial to the final stage.

Vivid examples of outsourcing in industrial production- These are electronics and telecommunications manufacturers who, in order to reduce production costs, have outsourced their production. In modern practice, several types of industrial outsourcing can be defined:

  • production of raw materials;
  • production of components or workpieces;
  • outsourcing of individual functions and operations designed to provide a full production cycle;
  • technological;
  • involvement of third-party specialists.

IT service

IT outsourcing can be considered the most common type, since the widespread use information technologies requires deep knowledge and professionalism of employees and system administrators. It has a wide range of functions that are associated not only with the maintenance of computer or office equipment, but also with the development and maintenance software products.

It is impossible to completely outsource the entire IT system to outsourcing companies, since there are a number of processes that must be performed exclusively within the company. This concerns information architecture, since it represents commercial information, access to which is primarily limited. The same applies to critical services that are responsible for key business processes.

What does an outsourcing company do?

Not many people fully understand what an outsourcing company is, confusing this concept with contract work. Its main difference can be considered that cooperation occurs over a long period of time, and sometimes on an ongoing basis. As a rule, such companies conduct highly specialized activities, which helps improve the quality of work performed without overpaying for services. Today you can count great amount types of outsourcing services, which suggests that this activity is profitable from both production and financial points of view.

Standard contract

When contacting outsourcing companies, an agreement must be concluded, which includes the timing of the work and its cost. The entire list of services provided should be as detailed as possible. If any activity is subject to licensing, the contractor must provide this document. In addition, the agreement specifies the rights and obligations of the parties, as well as settlement options. controversial situations and under what conditions a claim can be filed if the rights of one of the parties are violated.

Rights and obligations of the outsourcer

Each contract spells out the responsibilities of the outsourcer verbatim. Firstly, this is the fulfillment of all conditions specified in the agreement. Secondly, he must keep trade secrets and not disclose information obtained in the process labor activity. In addition, the company must provide the customer with a report on the work done, eliminate mistakes made and pay fines if they were made through his fault. On the other hand, the performer has the right to receive timely payment for his work, and to receive all the necessary information to carry out his activities.

How to open an outsourcing company

Every year the number of outsourcing firms that provide services in various fields of activity is growing in the world. As practice shows, interest in such organizations will continue to grow, so if you decide to organize your own outsourcing business, you need to go through several stages:

  1. Decide on the area of ​​activity in which you plan to work.
  2. Draw up a business plan, and treat this stage extremely carefully. Only a high-quality and correctly drawn up document will help not only to maintain a stable position in the market among competitors, but also to make a profit due to the profitability of outsourcing activities.
  3. Register your company with regulatory authorities.
  4. Renting premises. It is preferable to choose an area in a business center or business part of the city. Renovate the premises and purchase new furniture to create a pleasant impression on future and regular customers.
  5. Engage in personnel search and selection qualified personnel– people with work experience and responsible attitude towards their responsibilities.
  6. Launch an advertising campaign. You can use all means - from leaflets to television commercials. It is necessary to create your own web resource that would provide comprehensive information about your services.

How to choose a company providing outsourcing services

Although the number of organizations providing outsourcing services is large, choosing one that would suit all parameters is not so easy. In order not to make mistakes, there are several small rules:

  • Pay attention to the company’s experience and the time it has been on the market. This point is important, since extensive work experience helps not only to create a cohesive team, but also to improve the quality of services provided.
  • Study reviews of the company’s activities, and you should pay special attention not only to positive assessments from satisfied customers, but also to how the company responds to criticism - whether it corrects shortcomings, taking care of its reputation, or ignores them.
  • Choose a company with transparent tariffs for its activities.

Cost of services

If you carefully look into the cost of work provided by outsourcing companies, you will see that formally their price is higher than the work performed by their own employees. In reality, the use of third party services has a significant economic effect, because companies do not incur additional costs for recruiting and training personnel, paying them bonuses, vacation pay and other funds. There is no need to equip workplaces and purchase tools and equipment, which can cost a lot of money.

Transfer of money to outsourcing companies occurs only upon completion of work, and there are three types of remuneration:

  • payment based on results;
  • payment according to the hours specified in the contract;
  • payment for actual time worked.

Outsourcing work - advantages and disadvantages

Outsourcing has become popular recently, especially among the management of small and medium-sized businesses due to a number of advantages:

  • saving time and money;
  • performance of work by professionals;
  • increasing labor efficiency by switching all resources to production;
  • possibility of choosing an organization on a competitive basis.

However, before deciding to transfer a number of functions to external contractors, it is necessary to point out the disadvantages of outsourcing:

  • errors in performing assigned tasks due to the involvement of unqualified personnel;
  • the likelihood of disclosure of trade secrets;
  • Outsourcing companies are subject to less control than their own employees.

Video

The concept of outsourcing entered Russian practice only a few years ago, but has already become widespread. The essence of outsourcing comes down to the transfer by a company of certain operations to a third party.

This phenomenon quickly caught on, enterprises appreciated all the advantages of the system, and now there is quite high competition in the market in the field of outsourcing services.

Outsourcing - what is it?

Outsourcing (English outsourcing: out – external, located outside, source – source) is a set of activities aimed at transferring certain processes and functions by an enterprise to another organization. In general, outsourcing is the use of someone else's resources.

Main features of outsourcing

  • existence of an agreement on the transfer of functions;
  • long-term agreement (more than a year);
  • transfer of only non-core (non-core) operations;
  • possibility of transferring business processes (accounting, personnel selection, Maintenance).

What is an outsourcing company

The organization taking over the functions is most often highly specialized, which increases the quality of service and the level of responsibility. Such companies are called outsourcing or outsourcers.

Types of outsourcing

There are many types of outsourcing - almost all non-core activities can be transferred to outsourcing companies.

Accounting

One of the most popular forms of outsourcing is rightfully considered to be the transfer of accounting and reporting at an enterprise to a third-party organization. For the results of the enterprise-customer of services.

Several options for cooperation are possible:

  • drawing up reports;
  • record keeping;
  • full service (everyday accounting, reporting, creation and maintenance of primary documents).

In general, outsourcing of accounting services is a convenient function that allows you not to create an accounting department at the enterprise.

IT outsourcing

IT outsourcing involves the transfer of quite wide range functions related to the maintenance of computers and other office equipment. Any service in this area can be classified either as equipment maintenance (printer repair, all-in-one PC, etc.) or software (creation and maintenance of computer programs).

IT outsourcing is most widespread all over the world - this is due to the increased use of information technologies and high requirements to experts in this field.

Video - what are the advantages and benefits of IT outsourcing:

Personnel outsourcing

Personnel outsourcing is more relevant for large enterprises where staff turnover is possible. Human resource management issues are very time-consuming and cost-intensive.

Special recruitment agencies can take on the functions of hiring personnel, calculating the tax burden associated with wages, calculation of bonuses and compensations.

Payroll calculation is much less likely to be the object of outsourcing services.

The recruitment agency is not responsible for the quality of staff work.

Legal

Legal outsourcing is convenient for medium and small companies. A special outsourcing company will provide tax and labor law. You can also outsource the reorganization and liquidation of legal entities.

Highly qualified lawyers of outsourcing companies make it possible to completely transfer legal functions. An in-house lawyer will most likely cost more than a third-party specialist, since the workload on a specialist is usually low.

Video about legal outsourcing:

Logistic

Logistics outsourcing is also called transport outsourcing. It involves transferring transportation functions to a third party. This is convenient for those enterprises that use logistics services from time to time and do not need to maintain their own logistics service.

The logistics company will take over the functions of storing stocks and finished products and transporting them. All processes related to transportation and warehousing also fall within the competence of the transport company.

Video about the nuances of logistics outsourcing:

Industrial (production)

Production outsourcing is typical for high-tech enterprises. Companies in the technology and telecommunications industries outsource the entire production process to a third party.

As a result, manufacturing costs are reduced, quality and reliability are increased. This way, they can focus on promoting existing products and developing new products.

Advantages

The main advantages of outsourcing include:

  • cost reduction;
  • staff reduction;
  • the ability to concentrate on core activities;
  • receiving higher quality services;
  • division of responsibility.

You should turn to outsourcing if paying for the services of a third-party company would be more profitable than maintaining your own department. That is, the costs of an outsourcer will be lower than the costs of a full-time employee.

The main advantage of outsourcing is the ability to concentrate on core activities. Thus, part of the non-core functions is transferred to another organization, this allows saving resources that are directed to the development of the enterprise.

Companies involved in providing outsourcing services offer more high quality work and bear responsibility for its results. Their narrow specialization allows them to train employees in a timely manner and use advanced technologies, which is also an advantage for the customer enterprise.

Price

IN in absolute terms The cost of outsourcing is higher than hiring a full-time employee. But it is also necessary to take into account real savings time when making comparisons and taking into account opportunity costs.

The outsourcing company is responsible for all payments related to the employee’s salary: insurance premiums, payment sick leave, maternity, vacations. Also, in case of temporary downtime, the costs associated with them will also be borne by the outsourcer.

Many outsourcing companies offer discounts for the same amount of work under long-term contracts. Payment for outsourcing services occurs only upon completion of work.

Exists three types of outsourcing payment:

  • payment based on results;
  • payment according to the hours specified in the contract;
  • payment for actual time worked.

Most payment based on results is common– funds are transferred only after receiving a specific quantifiable result, for example, preparation of financial statements.

Pay by the hour specified in the contract is usually used when performing non-standard tasks for which time standards have not been established. In this case, the outsourcing company puts forward a proposal for the completion time, and the customer company agrees to the set time frame.

Payment for actual time worked used, for example, when ordering outsourcing services for hiring personnel. An outsourcing company specialist spends time recruiting personnel. He is not responsible for the subsequent work of the hired employee. He is paid only for the time actually worked.

Outsourcing in Russia

At the moment, in Russia there is already a certain understanding of what outsourcing is. But this, in turn, gave rise to many incorrect stereotypes. Not all enterprises understand that outsourcing is not hiring employees from outside, it is full-fledged cooperation in a specific area.

With the help of outsourcing, it is easier to increase capacity and increase market share. An outsourcing company provides support and full service for a specific process, which means it is easier for the customer company to focus on development.

Some large ones Russian companies have already appreciated the advantages of outsourcing, especially in the field of IT technologies and personnel selection. Long-term contracts for the transfer of functions allow us to reduce costs year after year.

Another feature of Russian outsourcing is the attitude of managers towards the transfer of functions. It must be remembered that outsourcing is a division of responsibility, and not a complete shift of responsibility to the outsourcer.

Examples

Currently, many world leaders in various industries use the services of outsourcing companies.

A global example of the successful use of outsourcing is IKEA company (IKEA). The company currently uses more than 2,500 third parties to produce its products. The supply chain (logistics service) is also outsourced. All company activities are focused on the main activity - retail sales.

Another large NOKIA company (Nokia) has completely outsourced technical maintenance and uses the services of IT outsourcing companies, which allows the company to reduce costs. Nokia also outsourced call center services, which allowed the company to focus on core production and marketing, as well as on creating a new product.

Discussion (14)

    Any outsourcing services have now become very popular, and there is simply no end to clients. Well, it’s much easier to outsource the work if you don’t have time and where they will pick you up the right person yourself.

    Outsourcing in Russian is when the same workers remain in the same places and do the same work, but report to another employer and receive a significantly lower salary. Although the former employer pays for the outsourcing. the company paid many times more than it previously paid its employees. The question is, who benefits from this and where does the difference go?

    This is how it is in our region (Bashkortostan). We, that is, the technical staff, were transferred to this outsourcing company, where we have to sign an agreement every three months. And as they explained to us, we will work in work book there will be no recording, and there will be no experience. There are no sick days or vacation pay either. ?

    Reducing the number of full-time personnel, first of all, the creation of an outsourcing company by the production manager themselves, the recruitment of unqualified personnel to the staff of the outsourcing company, the lack of social services, and finally taxes that could replenish the state treasury - this is our Russian outsourcing.

    Yes, separation of powers! Protects the manager from vanity, Each specialist in his field and clearly fulfills his duties. An enterprise under socialism, even for doctors

    Can you tell me about labor protection, can I provide outsourcing services? If yes, then tell me where to start, education has a direction in technosphere safety.

  1. Hello.
    Our company is searching for personnel for work on a rotational basis on the territory of the Russian Federation.
    We are currently expanding the market for our services, namely searching for companies with which we plan to closely cooperate in the future,
    For a small commission, we are ready to provide you with employees for currently in-demand vacancies.
    If you are interested in our offer, then we can discuss all the conditions in the future.
    If you are interested in our offer, we will be waiting for your response by email.

    I’m an accountant, I’ve long dreamed of doing outsourcing services, but I’m afraid! And I’m not so much afraid that I won’t be able to cope or that I’ll get scammed, what scares me is that I might simply not find clients.

    My business is a cargo taxi service. This is a small organization with a staff of five people. The senior dispatcher calculates and issues salaries to employees. The rest of the accounting is outsourced. A professional accountant prepares financial statements for my company. It’s convenient, so outsourcing accounting services is an ideal option for me.

    I can say that the phenomenon of outsourcing under ideal conditions is described here, as it should be. A sort of “spherical horse in a vacuum.” In our realities, there are a lot of abuses in this area. In fact, the outsourcing agreement is a loophole that allows, for example, various state unitary enterprises subordinate to the executive authorities, after concluding government contracts with the state. the customer to give the requested work to a third-party sub. to the contractor (in this case, the state unitary enterprise retains a margin and appears as the performer of the work). This is absolutely legal, since neither 223 Federal Law nor 94 Federal Law in any way regulates or prohibits the organization that has won the competition from engaging third-party companies under outsourcing agreements, which actually perform the work.
    I know this scheme quite well, as I have often encountered it personally, having worked in the public sector for many years.
    This example, of course, does not mean that the practice of engaging contractors as part of outsourcing is in itself vicious. In private business, for example, this is used quite successfully and justifiably. And if we talk about small businesses, then outsourcing is perhaps the main means of saving payroll in the early stages of the functioning of any organization.

    A fairly convenient proposal for conducting business at an enterprise. And indeed, if the company is small, why have an entire accounting department, for example, to prepare this or that report once or twice a year))) Now everything is simple. You can easily enter into an agreement with a third-party company that provides one or another service you need. That's all! If necessary, you can use their services, thereby making your work easier and freeing up time, and most importantly, saving money! This type services have indeed become popular in our country relatively recently, but are already extremely popular today.

    Undoubtedly, outsourcing services have a great future. Nowadays there are a lot of companies with a small staff. For example, in a company with 5 full-time employees, it is not profitable to have an accountant, a computer and IT specialist, but there is a considerable need for such services. Firms providing outsourcing services also spend little time on such clients, receiving payment either by the hour or by the result. Profitable and convenient.

One of good ways to increase the efficiency of the work process and achieve greater productivity from personnel, the principle of division of labor is recognized. True, not all enterprises can afford to create a large staff of highly specialized specialists, because their salaries are far from small. An excellent alternative is available to such organizations: they can transfer (delegate) some functions that are not of key importance to a representative of another organization. This delegation is the answer to the question of what outsourcing is. In simple words, the process can be described as attracting an outside specialist.

Features of outsourcing

The outsourcing company, which undertakes to carry out these duties, enters into an agreement with the customer company. Long-term cooperation is of interest to both companies, as it is mutually beneficial.

There are complete and partial in simple words:

  1. Complete - the outsourcing company assumes the performance of all functions in any area.
  2. Partial - the involved employees must carry out only some procedures or activities.

Despite the fact that this concept is relatively new for domestic businessmen, many have already appreciated how convenient and economical outsourcing is. What it is? The following types and examples can be given: attracting a company for full service of enterprise computers is a complete outsourcing. At the same time, in case of partial transfer of responsibilities for repairs or monitoring of the condition is carried out software, and other tasks remain with the full-time employee.

What is outsourcing: in simple words about the types of outsourcing

During the activity modern enterprises The following types of outsourcing may be necessary:

  • Production involves transferring to another organization the execution of a production task. An example would be most advertising agencies. They entrust the printing of printed products to specialists (banners, flyers).

To save on the purchase of additional equipment and expand their capabilities, it is extremely important for such enterprises to know what outsourcing is. In simple words, this concept can be described as reasonable savings.

  • In the IT field, this type of outsourcing involves the involvement of organizations to create websites, maintain equipment that is at the disposal of the customer enterprise, or to develop any type of software with its subsequent support.

A good example is retail chains stores that do not employ programmers on staff, but engage an outsourcing company on a contract basis to create and maintain their websites.

  • In the field of business processes, if it is necessary to regularly perform small amounts of work with documents or with personnel, an appropriate outsourcing company is involved. What is this in simple words? This is an accountant, economist or business coach who is not part of the company’s permanent employees. Hired specialists perform work related to payroll calculations, accounting, legal or consulting services, audit, personnel selection.

Benefits of outsourcing

Among the advantages of such a phenomenon as outsourcing is the elementary ability of a company to concentrate its efforts on conducting core activities. That is, the enterprise can only engage in own production without being distracted by secondary tasks (for which specialists are invited).

Also important is significant financial savings. It is due to the fact that it is possible to reduce investments in resources and abandon the training and maintenance of unclaimed employees.

Thus, outsourcing becomes a significant saving factor. What is it in simple words: an invited specialist does the work faster and with better quality. Some businesses report cost reductions of 20%. In addition, new strategic partnership paths open up new opportunities for all participants.

Disadvantages of outsourcing

One of the disadvantages of this type of activity is a certain dependent position in which the customer company finds itself. The occurrence of any difficult situation (economic or production) at a third-party service provider affects the work of their client.

In addition, there may be dissatisfaction on the part of permanent employees of the enterprise, who are forced to make a management decision to outsource. What it is, definition, meaning and features were discussed above, however human factor was not taken into account. Sometimes incoming employees may be seen as competitors or job applicants.

Also, a significant disadvantage of outsourcing is the need to provide third-party companies with confidential information about the enterprise.

Outsourcing - business

Having understood what outsourcing is (in simple words - delegation), we can consider some aspects of the organization and functioning of an outsourcing enterprise.

According to many owners own companies, this type of activity is quite profitable, profitable and promising. In addition, the formation of such a company does not require such large sums of money as a traditional business.

Initial investments are necessary to pay for the rental of premises, paperwork, purchase of office equipment and equipment. Also, an important cost column is the selection and maintenance of qualified personnel and advertising of the newly formed company. Raising invested funds has become a traditional business practice. Entrepreneurs who do not have the required amount to form a company resort to this step.

Investors can be individuals, other enterprises or banking institutions.

Personnel is the main resource of an outsourcing enterprise

Based on the fact that an organization that “rents” its employees receives remuneration for the work they perform, its personnel must be well trained, competent, literate and well versed in their field.

When searching for personnel, applicants are asked to meet the following list of requirements:


What is outsourcing and outstaffing: differences in concepts and terminology

Such seemingly similar concepts actually have a lot in common. However, in practice these are different forms of labor organization and the main differences are listed below:


Conclusion

Thus, we can conclude that a new word and a new concept serves many entrepreneurs in a variety of business areas. To increase production profitability, reduce personnel costs and expand their own horizons, organizations use personnel outsourcing. What it is in simple words can be described with several synonyms: delegation, transfer of responsibilities, involvement of outside specialists.

Since workers are drawn from the contractor’s organization to conduct certain business processes, the corresponding departments of the company can be reduced;

Payroll reduction

Attracted from recruitment agency the staff is not registered on the staff, so they do not have to pay a salary. There is also no need to make social and tax contributions from the payroll;

Avoiding additional staffing costs

Tax optimization

Attracting freelance workers helps to reduce the number of officially registered employees. This allows you to maintain the status of a small enterprise and deduct a minimum share of profits in the form of taxes. Also, tax costs are reduced along with the payroll;

Preventing costs for inventory, work uniforms

By ordering labor services for workers, an enterprise can receive a complete team by signing the appropriate contract;

Reducing the costs of running a non-essential business process

If the contractor is entrusted with the management of a complex of non-core tasks, and not just the responsibility of personnel selection, then the costs of performing auxiliary functions are eliminated. The customer only periodically pays the outsourcer under the contract and is guaranteed to receive the desired result.

The word outsourcing is formed from the English term “ out source» - external source (channel, resource). Technically, this means that to perform some type of work, the labor of a contractor, rather than a permanent specialist included in the organization’s staff, is used.

Example 1: Small construction company is engaged in the renovation of apartments and houses, but does not have a designer on its staff with a permanent salary, but attracts an independent professional as needed.

On the other hand, unlike civilian specialists hired to perform some one-time work, cooperation based on the principle of outsourcing is implemented on an ongoing basis and involves interaction for a period of at least one year.

Example 2: The services of a construction team for the renovation of a grocery store will not be outsourced, since they are performed one-time (until the renovation is completed). In turn, the services of an IT company engaged in constant promotion and updating of the site, as well as technical support CRM systems the same store - will be classified as outsourcing.

Any type of work can be outsourced, with the exception of the main activity of a particular enterprise.

Example 3: A car service center with hired workers on a piece-rate basis involves an incoming accountant in the calculation of financial statements and salaries. In this case, specialists performing car repairs will be the main staff, and the visiting accountant will be an outsourced specialist.

Thus, we can formulate the following simple definition: outsourcing is the transfer of non-core business processes to third-party specialists on a regular basis.

Types and categories of outsourcing

The main task of attracting external resources to work can be called reducing the costs of doing business and the ability to concentrate on solving the main task of the enterprise. Based on this, several types of outsourcing are distinguished, which are conventionally divided into three characteristic groups: production, procedural and managerial.

Production and management types of outsourcing

The outsourcing production model consists of transferring processes for the production of products under the brand name of the customer’s company or a certain category of components for it. Such services can be used industrial enterprises, for which it may be unprofitable to launch a new separate line or workshop, as well as organizations engaged in scientific research and development of new technologies. This format of work is most popular among electronics manufacturers.

Managerial (knowledge management outsourcing) – transfer of business processes associated with the analysis of certain information, data or statistics, on the basis of which a rationale for making certain management or investment decisions can be formulated strategic planning enterprises.

Process outsourcing and its varieties

Process outsourcing is the largest group and the most popular type of delegation of tasks to third-party resources. It involves transferring accompanying permanent processes to execution. Depending on the type of service, procedural outsourcing is divided into several subcategories:

  • Financial- accounting and Banking services, audit, registration and preparation of documentation for tax authorities, payroll calculation.
  • Legal- preparation of contracts, preparation of documentation in the field of business activities of the enterprise, representation in courts, verification of partners.
  • Technical- repair and service production equipment, communication systems.
  • Logistic- supply of raw materials and goods, development of optimal routes, provision of a vehicle fleet, tracking and integration of the tracking system.
  • IT outsourcing- maintenance and repair of computer systems, Internet resources, software development and integration.
  • Cleaning- office and office cleaning storage facilities, trading floors and industrial zones.
  • Service- services of call centers and technical support of the first levels.
  • Marketing- market research, planning and organization advertising campaigns, promotion of basic services or product on the market.
  • Sales outsourcing (telemarketing)- transfer of sales department functions.
  • Security- ensuring the safety of the enterprise (non-departmental security), resolving issues regarding the organization of labor protection at work.
  • HR outsourcing- selection and management of personnel, analysis of the performance of specialists, training and adaptation of employees.
  • Highly specialized- involves the involvement of specialists in a certain type of activity (designers, translators).
  • Food outsourcing- mobile food services for employees, catering.

A separate type of procedural outsourcing is outstaffing (staff leasing or agency labor), which involves providing employees from one company to another on a long-term basis.

Considering such services as personnel outsourcing, what it is in simple words can be formulated as follows: employees are documented to be employed in an outsourcing company, although in fact they work for the customer’s company. This allows the latter to get rid of problems with personnel selection, documentation, taxes, as well as dismissal and subsequent social obligations, since, if necessary, an unsuitable employee is simply replaced by an outsourcing company with another.

Since 2014, this type of service has been prohibited in the Russian Federation, with the exception of the following cases:

  • Temporary employees are sent to work for a company that may influence the activities of the sending (outsourcing) company or if there is a shareholder agreement between them.
  • The sending company is registered as an employment agency.

Types of outsourcing by geopolitical characteristics

Outsourcing is also classified into separate groups and according to geopolitical criteria, divided into:

  • Interior- an agreement is concluded between parties operating within the legal framework of one state.
  • International- transfer of certain processes foreign company, due to the lack of the required type or level of services in the domestic market.
  • Offshore- international outsourcing, in which the priority is to attract inexpensive work force and inexpensive industrial resources. This could be manufacturing, software development, call centers, etc. The most attractive countries for offshore outsourcing today are China, Romania, Philippines, India, Pakistan, Russia, Ukraine, Bulgaria, Egypt and Bangladesh.

Who can provide outsourcing services and how such labor relations are regulated

Actually external labor resource There can be either individual independent specialists or large companies. However, they can be an independent entity entrepreneurial activity, parts and divisions of large companies, as well as simply individuals.

Officially, the concept of outsourcing does not exist in domestic legislation, as well as a strict sample contract. Therefore, when registering such labor relations The interacting parties can be any legally capable persons and legally operating organizations between which the contract for the provision of services applies. Such an agreement usually stipulates:

  • list of works (services);
  • qualifications of attracted specialists;
  • turnaround time;
  • liability of the parties and fines imposed in case of failure to complete work on time;
  • payment format for services;
  • duration of the contract;
  • requirements for maintaining data confidentiality;
  • conditions for early termination.

At the same time, the contracts themselves can be drawn up for outsourcing, provided in various volumes:

  • Full- with this format, the contractor receives complete (or almost complete) information about the company’s activities and performs all types of work in the selected sector. For example, this could be the development and integration of optimal logistics processes at all levels of the company.
  • Partial- only part of the work in a certain area is transferred. For example, the tasks of an outsourcer may only include servicing specific software, without access to the entire IT system of the enterprise.
  • Joint- provides for the transfer of part of the services under subcontracts. Thus, outsourcing of accounting services for an enterprise can be performed by one specialist, and delivery tax reporting, the subcontractor he hired.
  • Intermediate- involves transferring the company’s own specialists under the management of an outsourcer.

What types of external cooperation are not outsourcing?

Quite often, outsourcing is confused with freelancing services, but there is a significant difference. A freelancer is simply a free specialist who, theoretically, can work under an outsourcing agreement, but only if there is one he will be considered an outsourcer. On the other hand, an outsourcer can also be a large company that does not fall under the category of freelancing. Thus, freelancing is a format for finding a job for a specialist, and outsourcing is a type of labor relationship between a customer and a service provider.

Dropshipping is not outsourcing either, since in this case there are no such parameters as: volume of work, deadlines, level of payment and a fixed term of the contract. Theoretically, in such a relationship, the supplier simply nominally sells the product to the dropshipper, who resells it to the end consumer.

Advantages and disadvantages of outsourcing

Speaking about attracting external resources for small business processes, it is worth understanding that this format in practice has its pros and cons. Knowing them, you can decide which types of activities can be entrusted to a third-party organization, and what is better left to in-house specialists.

The main advantages are as follows:

  • Opportunity to focus on your core business, cutting off additional processes.
  • Receiving more qualified services. As a rule, external specialists, working with several companies, have more experience and are also more intensively engaged in self-development and education, which is necessary to maintain their own competitiveness.
  • Guaranteed results. If the outsourcer does not fulfill its duties on time and at the proper level, it will be subject to fines.
  • Saving money on labor costs. There is no need to pay wages, bonuses and other types of payments. The outsourcer takes payment solely for the volume of work.
  • Removal social responsibility upon termination of the contract. When changing an employee, there is no need to report to the employment center and pay compensation.
  • Reduced tax liabilities. From the point of view of tax services, full-time employees are regarded as having a positive impact on the level of profit, while outsourcing services are direct costs in the activities of the enterprise.
  • No problems with employee absenteeism (vacations, sick leave). In such cases, as a rule, the outsourcer is obliged to provide a replacement specialist.
  • Possibility of quick reorganization production processes and business transformation. The fewer employees an organization has, the higher its mobility and ability to adapt to dynamic market changes, simply by refusing unnecessary services or quickly acquiring new ones.

Disadvantages of outsourcing:

  • Dependence on contract terms. A full-time specialist can be assigned a wide range of functions and responsibilities without changing the salary tariff, while an outsourcer works strictly within the terms of the contract.
  • The difficulty of finding a specialist who deeply understands the specifics of the business. A full-time employee does not need to explain the specifics of the industry, which allows him to make the most optimal decisions.
  • The need to disclose confidential data and business secrets. Transferring internal data to a third party increases the risk of competitors stealing valuable information.
  • Difficulty in assessing the potential of the hired contractor’s employees. By entrusting the work of a company to an outsourcer, you rely on a third-party opinion about the qualifications of the specialists involved, which does not always coincide with your standards.
  • Possibility of conflict situations between internal and external specialists. When ordering specialist services from an outsourcing company (especially with partial outsourcing), full-time employees may regard the manager’s actions as a low assessment of their professional abilities.
  • Probability of downtime. If, for example, the repair of production equipment is outsourced, waiting for a technician to arrive when a breakdown occurs can stop the process for a long time, whereas a full-time employee, being constantly on site, would quickly solve the problem.
  • The need for constant process control.

Analyzing the opportunities that outsourcing provides, it is not difficult to formulate what it is in simple words. In fact, this is a relationship between the employer and the contractor not on the rights employment contract, with the obligations arising from it, but on the terms of a partnership agreement, eliminating a number of formalities and giving an additional degree of freedom for both parties.