Why Outsourcing? | PECB

A more simple definition of outsourcing is: someone doing different tasks for you; and the reason for outsourcing is: not spending the time on, ... PECBUniversity Aneducationalinstitutionofferingmarket-relevantanduniquespecializationsinExecutiveMBA,GraduateDiplomaandGraduateCertificateprograms PECBConference Agatheringofprofessionalsandexpertswhodiscussonthelatesttrendsandtopics PECBMagazine Anauthenticsourceofinformationandinspiration Login Partnerwithus Store OnlinestoreforISOandIECstandards,Toolkits,eBooks,etc. EN FR DE ES KO /Resources /Articles WhyOutsourcing? Continuity,Resilience,andServiceManagement 2015-11-13 Howdidoutsourcingbecomesofamous?Itwas1981whentheterm“outsourcing”firstcametouseanditcamefromAmericanGlossary,whichmeans‘outsideresourcing’.Amoresimpledefinitionofoutsourcingis:someonedoingdifferenttasksforyou;andthereasonforoutsourcingis:notspendingthetimeon,let’sjustsay,bookkeeping,sales,researching,taxes,legalissues,etc.,andfocusingonsomethingmoreimportant.Anotherdefinitionofoutsourcingistogetsomeonetodoyourjobforacertainamountofmoney. Whyisoutsourcingasolutionforlotsofcompanies,smallbusinesses,andprojects?Certainly,oneofthereasonsisfinancialbenefits,oftenonecangetthesamejobdoneinadifferentcountryforlessmoneythanintheirhomecountry,butwhenitcomestothequality,doesithavethesamequalityornotisariskthatwetakewithoutsourcing.  Whicharethemostoutsourcedbusinesstasks? Althoughoutsourcingmeanstopaysomeonetodothejobforyou,therearestilltasksthatyoucannotoutsourceatanycost.Amongothercountries,Indiaisoneofthemostoutsourcedcountriesforvariousjobs.Duetoeconomicissues,therearemanypeoplethathavecollegedegreesbutjetworkascustomersupport;byallmeansthequalityisoverwhelming.Nottoforgetherethecostsavings,officespace,traininginvestmentsandtaxes;whereinAmericathesamejobispaidmorethaninIndia,orinsomeotheroutsourcedcountries.Nevertheless,therearesomeoutsourcedbusinesstasksthatarealreadyinthemarket. CustomerSupport,alsoknownas“callcenter”,isoneofthemostoutsourcedbusinesstaskaroundtheworld.Peoplearehappytodoitasoutsourcingpaysbetterthanthecountrytheylivein. Accountingisthesecondmostoutsourcedjob.Thereisastandardizedmethodologythatprofessionalsallovertheworldknow,soitiseasytooutsourcethistaskandgetthesameresults.ThereasonwhythistaskistheeasiesttooutsourceisthatmostoftheprofessionalsaretrainedinAmericanaccountingpracticesandthisiswhatmakesiteasier. WebDesignisanoutsourcedjob.Therearealotofwebdesignersandteamwebdesignerswhoareveryskilledinwebdesigning,andalsoprovideservicesaswebsitetemplates. ComputerProgrammingisalsoanoutsourcedbusinesstask.Acommontaskofacomputerprogrammerisprogrammingprojectsasmessageboard,calculator,ordatabase. Manufacturingisoneofthemostoutsourcetask.InAmerica70%ofmanufacturingisoutsourced.Thereasonwhythispercentageishigherthansomeotheroutsourcedjobsisthecostsofsocialsecurity,healthinsuranceandrisksafety. Research&Developmentisaverytimeconsumingjobforeveryone,soinordertosparealotoftimethistaskisoutsourced.Researchingincludeseverything,startingfromcustomerdemographics,financialresearches,pharmaceutical,etc.,whateveracompanyneedstoresearchforfurtherdevelopment. Outsourcingbenefits Today,outsourcingisverycommoninmostofthecompaniesaroundtheworld;ofcoursetherearelotsofbenefitsfromit. Costsavingsisoneofthereasonswhyoutsourcinghappenedatthefirstplace.Outsourcingisanadditionalassistanceforsmallandbigcompanieswantingtogrowitsbusinesswithfewerexpensesbyoutsourcingforresearch,marketingandcustomerservice.Ithelpsreducingthecoststructureandoperatingcosts. Anothercharacteristicofoutsourcingisstaffcontrol,hiringandtrainingstaffforashort-termperiodisratherexpensive,whereasoutsourcinggivesyoutheopportunitytogetwelltrainedpeopleforthejobinaveryshorttimeandofcourselesspayed. However,oneshouldneverunderestimatetheriskthatcomeswithoutsourcing.Riskishighlypresentin startingcompanies.Whenyoustartabusiness,oneofthethingsthatyoudealmostlywithisthemarket competition,financialriskandtechnology.Thuswithoutsourcingyoucanfindtherightpeopleforthemarketcompetition. CanyoucallitaWin-WinOpportunity?Outsourcingisbeneficialforboth,theemployerandemployee.Theemployerneedstohiresomeonetodothejobforhim/herinexchangeformoney,whiletheemployeebenefitsfinanciallyandprofessionally.Forcompaniesthatoperateincountrieswithadifferenttimezoneisveryeffective,whileinEuropepeopleareworkingduringtheday,inAmericatheyaresleeping.SowhenpeopleinAmericawakeupmostoftheworkisalreadydoneandthisisawin-winopportunityforbothsides. However,itisnotalwayseasytofindtherightprofessional.Tofindtherightoutsource,youshouldalwaysbepreciseandclearofwhatyouwant,howyouwantitandwhenyouwantit,sotherewillbenosurprisesafterwards.Monitoringisanotherissueworthmentioning,itiseasytosuperviseandmonitoremployeeswhoarephysicallyinthecompany,butwithoutsourcingisadifferentstory.Monitoringandsupervisingoutsourcebecomestrickyduetothephysicaldistance.Outsourcingismoreaboutbelievingandgainingtrustbydoingexactlywhatisasked,sothisisariskthatbusinesspersonshavetotake. Unemploymentisoneofthebeneficiariesofoutsourcingbecauseithelpstheemploymentratetogethigher.Therearepeoplewithdifferentprofessionalfieldsthatcannotfindajobintheircountry,butcanworkasanoutsourcerforsmallorbigcompanies;soitisaplusforunemploymentissues. Lastbutnotleast,win-winopportunityisthemoney,sincelotsofservicesaremoreexpensiveindevelopedcountrieslikeUS,UK,Germany,etc.;therearecountriesthatarewillingtoworkforlessmoneydoingvarioustasks.Whileawebdesignerispaid30$perhourinUS,thesamejobisdoneforahalfofthepricewhenoutsourcedandstillbothsidesremainsatisfied. Outsourcingisagreatopportunityforbothsidesasanemployerandemployee.Whenyouwanttostartacompanyalotofworkhastobedoneandoutsourcingcanhelpyoufindtherightpeopleforlessmoneytodothejob. PECBisanaccreditedcertificationbodyforpersons,managementsystemsandproductsonawiderangeofprofessionalstandards.Amongotherstandardcertifications,itofferstheCertifiedOutsourcingManagercourse,whichisbasedonISO/IEC37500standard. RrezartaHaliliisaRiskandManagement(RM)CourseDevelopmentManageratPECB.SheisinchargeofdevelopingandmaintainingcoursesrelatedtoRiskandManagement. Ifyouhaveanyquestions,pleasedonothesitatetocontact: [email protected],pleasevisitPECB ISO37500 TrainingCourses.  Downloads English QualityManagementSystem Health,Safety,andEnvironment Continuity,Resilience,andServiceManagement InformationSecurityManagement RiskandManagement ITSecurity Governance,Risk,andCompliance Transportation,Telecom,andEnergy Other Cybersecurity Sustainability LatestArticles InvestinginInformationSecurityAwareness Wearelivinginadigitalizedworld,wheremostday-to-dayactivitieshavemig.... ReadMore HowWillISO/IEC27002:2022ImpactISO/IEC27001 AccordingtoCybercrimeMagazine,itisexpectedthatglobalcybercrimecostsw.... ReadMore AQualityManagementSystemBasedonISO9001 ISO9001isaninternationalstandardwhichspecifiestherequirementsforesta.... ReadMore SUBSCRIBETOOURNEWSLETTER Subscribe Pleaseentervalidemailaddress. 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