ADVANTAGES OF OUTSOURCING

"Outsourcing" is most often applied in the case of the establishment of long-term stable relations of production on a contractual basis between the customer and the contractor to transfer him to some special features to reduce cost and improve the quality of production or to direct the freed up resources to achieve certain strategic objectives for further development of the enterprise.

Industrial and Technological Cooperation is often the creation of stable intra-relationships of related industries on a contract (contract) basis with other companies with sufficient capacity to perform due to the pre-production program and bred within reasonable transport costs.

Application of this method of business co-operation in many companies due to the need to focus its main efforts on the core business of the enterprise and achieve competitive advantage by reducing costs while increasing production efficiency. The major causes of outsourcing are striving to increase productivity while reducing costs and the desire to focus on core activities. In addition, outsourcing allows faster turnaround time, and facilitates access to new technologies and special equipment. The effect of outsourcing, according to various experts, will enable customers to reduce operating costs by approximately 35% and increase the profitability of capital by an average of 6%, while accelerating the pace of revenue growth. Most outsourcing market comprises two main segments: the provision of scientific, technical and intellectual services (data processing, research, project development, programming, statistical monitoring, accounting and other technical work) and industrial outsourcing.

Industrial outsourcing - is the production and delivery of procurement, hardware and components, and, on the other hand - is to perform some auxiliary functions and operations to ensure production (accounting, warehousing, repair and maintenance, advertising, cleaning, logistics, etc ..)

One of the factors contributing to the development of outsourcing companies is the presence of high levels of specialization in production and services, effectively applying information and computer technology (ICT), providing fast and reliable exchange of information, financial and material flows in a developed transport infrastructure.

The level of outsourcing relationship in various areas of the world economy is characterized by the following relationships: The financial sector outsourcing covers 33% of all contracts and accounts for 26% of their total cost; The manufacturing sector comprises 17% of all contracts and reserves 15% of their total cost; The telecommunications sector comprises 13% of all contracts and reserves 12% of their total cost; The scope of business and other services to cover 18% of all contracts and reserves 17% of their total value, and intelligent network services segment is larger and more dynamic.

The most important arguments in favor of outsourcing are cost savings, reliability and guaranteed quality of services provided. In addition, the spread of outsourcing due to complexity of business processes that create extreme congestion of companies caused by the need to further advance the growing flow of goods or services to the market with limited resources in terms of dynamic changes in market conditions. This led to the widespread adoption of information and computer technologies (ICT) in business and management companies. At the same time increased the complexity of the implemented information systems and, consequently, increased saturation of the enterprise hardware and software, which has led to an increase in specialist staff to support them.

The result was that more effectively you can work to ensure these systems, having carried out a complete transfer of the ICT infrastructure to an external service, and this was the basis for active development outsourcing market. ICT services market is growing rapidly worldwide and as the promotion of economic reform has a number of spheres in Russian business. This is due to increased business activity and increased responsiveness to changing market conditions.
Outsourcing companies through the Internet are able to penetrate the markets of other countries. Thus, in the Russian market has consistently running a lot of foreign ICT companies, in turn, domestic outsourcers are able to actively expand its activities in the markets of neighboring countries.

The customer, assuming the establishment of long-term and stable business relationships, find potential contractor meets the basic requirements of the customer (quality and speed of execution of work, low cost, high level of responsibility, etc.). In this case, the contractor may adapt their production and technological means, or scientific, technical and intellectual potential for the benefit of the customer for payment determined by the current cost of services, rather than share in the profits. This is due to the fact that the contractor (outsourcer) has the opportunity to specialize in a narrow field of production or services, concentrating in their own best experts, using the most modern equipment, using advanced technology and constantly accumulating experience in servicing multiple clients.

By combining its own and borrowed experience outsourcer gradually improves the quality of service and always offers ready-to-use solution. Serving many customers outsourcer allocates overhead costs and optimizing the economy works, that makes it possible to reduce the prices of their services while improving their quality. At the same time the customer buys the services, without incurring the costs associated with maintaining specialized units with trained personnel and with sophisticated equipment. This allows the company to the customer, reduce the cost of development, as an opportunity to acquire the necessary services at no additional cost and at the best prices. Outsourcing Contract entitles the customer to obtain the desired service performed in a professional manner and in many cases with the provision of financial responsibility for the quality of outsourcing them. As a legal entity, outsourcing company has assets that can be claimed as compensation for possible damage. In addition, outsourcing activities are the subject of insurance and therefore liable for their work increasingly divides the outsourcer with the insurer. In the case of mistakes or poor work performance by staff members of its own service company can recover only a portion of the damage, for example, only by their dismissal without payment of final salary.

 
   

 

 
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