Why delegate to outsourcing? The secrets of productivity

Outsourcing Services

To check the pulse of your company and understand if it is going in the right direction, you have to ask yourself certain questions. Does your company have the skills and resources to carry out all the necessary activities? Are you able to perform them in a reasonable period of time? Are these activities that must necessarily be carried out by your employees? How much do these activities affect your budget?

You may be surprised by the answers and find that your company might not be performing as well as you had thought. This is where outsourcing comes in, that is, the outsourcing of services to third parties. We at We Are Fiber specialize in providing just such outsourced services. To find out how we operate, get in touch.

What is the meaning of outsourcing?

 delegate in outsourcing services

Let’s start with the definition of outsourcing, which can literally be translated as “receiving from outside”. With this practice, now also common in public administration, part of the company production process is entrusted to external parties.

There are two actors involved in this process: the outsourcers or specialized service providers, and the outsourcee or those who require the outsourcing of one or more services. This relationship is regulated by an outsourcing contract, which establishes the methods and types of services required.

For whom is outsourcing suitable?

Small and medium-sized companies do not always have sufficient means to counter multinationals. Hence, outsourcing becomes a viable way in which to increase one’s competitiveness and encourage the growth process.

Outsourcing allows SMEs to save on management costs, impacting less on the company budget, but it also ensures innovation and optimization in the production processes, in terms of accessing qualified skills and providing a better final product to the customer.

However, outsourcing is also a valuable resource for large companies and multinationals, as it means delegating secondary activities to focus more on those at the center of the company.

The advantages of outsourcing: the economic benefits

Now that we have determined what outsourcing is, it is essential to understand its various benefits. The first aspect to highlight is certainly cost control, which is fundamental for companies with a limited budget. The services that are outsourced generally include activities related to distribution, such as logistics and marketing, or operational activities, such as customer care, billing and accounting. The costs are proportionally reduced, as the expenses and investments in the relocated areas fall upon the third-party companies that take over the operations. The savings achieved on labor costs should not be underestimated either, since human resources are freed from tedious tasks that do not fall within their core capabilities, while excessive human capital can be reallocated to other sectors. Finally, it is possible to save on training costs for personnel who, spared from those tasks outsourced, do not have to specialize in areas unrelated to their primary functions.

How productivity improves

Outsourcing also allows for significant productivity benefits, as the company can leverage the outsourcer’s expertise and technologies. Production processes become more efficient, where it is ultimately simpler to design and develop new products and ensure the best quality of the final product. Launching a product on the market can also take place more rapidly, thanks to greater flexibility in terms of production, which is effective, efficient and optimized. Quality improvements are also significant in this regard, leading to increased profitability.

As mentioned, the company that outsources can also focus solely on its core business, which is certainly a great advantage. Peripheral functions, which are necessary, but do not fall within the specific capabilities of a company, can easily be delegated to outside parties. Managers and employees can therefore focus on the company’s priorities, optimizing corporate strategies and drawing up future projects.

Relying on companies who provide outsourcing services means implementing risk management and overcoming staff shortages, especially during holidays. A resource external to the company has a neutral and more objective vision, so if necessary, it can indicate the best solutions to overcome a problem or get out of a crisis.

Types of outsourcing

There are various forms of outsourcing to choose from, depending on the needs of your company. Firstly, Business Process Outsourcing implies entrusting entire business processes to third parties. Secondly, Knowledge Process Outsourcing is where only the most complex tasks are outsourced to experts with a high degree of specialization. Thirdly, Out-tasking is where third-parties are relied upon for, oftentimes, tedious and time-consuming tasks in a particular area. Finally, Selective Outsourcing is a mix of business process outsourcing and out-tasking. Only individual sub-areas are entrusted to third parties in this case, but not the entire process.

As you can appreciate, it is of fundamental importance to choose the right partner when outsourcing, one that has already accumulated extensive experience in the area where you require assistance. This is where We Are Fiber steps in. 

To understand which activities to delegate and how to go about the process, contact us for professional and expert support.

Contact us now.

 

Email: info@wearefiber.com

Telephone (It): + 39 02 42 10 11 22

Telephone (United Kingdom): + 44 20 38 70 44 08

 

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