To optimize the company’s expenses or avoid excessive spending, improve financial performance, save management resources, quickly reorganize the business – all these tasks can be solved by outsourcing. We will talk about what this type of business is, its features, cost, pros and cons in this article.
What is outsourcing
Outsourcing: what is it? The term originated from the English abbreviation for the phrase “outer-source-using”. Loosely translated, it means the use of resources attracted from outside. In Russian business use, outsourcing is the involvement of third-party companies by an organization to perform any functions.
For large companies, this is the organization of catering services, cleaning (cleaning the territory), security, repairs, transport. Small firms often outsource accounting and legal functions, IT infrastructure maintenance.
The main parameters of outsourcing cooperation are the transfer to the side of only non-core functions of the company, the obligatory presence of a contract and its validity period of at least a year.
What is outsourcing used for?
Third-party firms are usually involved in the performance of work in the following cases:
- The company is small, and it is more expensive to maintain its own service departments or individual specialists than to hire them on the side. Or some of the company’s functions require periodic one-time work, which is easier to order from outside specialists in data science agency.
- In a large company, the presence of a large number of its own non-core subdivisions that are not profitable has a bad effect on the overall reporting (this is significant, for example, if the company’s shares are listed on the stock exchange).
- The firm cannot spend large sums of money on non-core functions, is uncompetitive in the labor market in some specialties, and therefore experiences constant problems with finding personnel.
- The company needs to cut costs on the payroll or simply cut staff.
- A state or municipal organization needs to achieve a certain level of average salary (due to outsourcing of low-paid functions – cleaning, for example, the average salary for the institution increases).
IT services outsourcing
It costs a lot of money to find a good programmer on the staff, and it is not always possible to load such a specialist with work 100%. Data science outsourcing comes to the rescue. But not only small firms use it. For example, Rosneft has outsourced its basic technological services, leaving only innovative and strategic IT divisions in the company’s structure. Sberbank created a subsidiary company specifically for the withdrawal from the main business of its IT divisions.
It outsourcing is of two types:
- maintenance of equipment (keeping computer networks, servers, workstations in working order, refilling cartridges, etc. In the professional environment, IT specialists call these services “service desk”);
- creation and implementation of software, network infrastructure.
Outsourcing of information technology allows you to solve the problem of finding qualified personnel, save money on the purchase of equipment and software updates.