Many wonder what is outsourcing.The term has many definitions.The literal translation from English means that it's attracting external resources to meet the necessary requirements.In practice, this definition is used for the placement of long-term orders for third-party companies the required services, or transferring some production functions to other companies.
There is a certain intimacy, and in some cases, outsourcing and subcontracting compatibility.The basis of the first activities are long-term stable business relationship with the customer the contractor having basically contractual arrangements.In the interests of the customer contracting firm adapting its production and technological means or intellectual and technical potential in exchange for the payment, which is determined not to share in the profits, and the current cost of services.Knowing what to outsource, you can see that the subcontracting is in fact a special case of this type of activity, implying limited communication in the framework of one-off orders.
entire outsourcing market can be divided into two segments: the provision of intellectual services and outsourcing industry.The first type include IT-outsourcing.It works on maintenance of office equipment, data processing, programming, etc.Industrial outsourcing the one hand involves the production of various components, hardware, blanks, and the other - the execution of support operations and functions to ensure the production of (warehousing, accounting, maintenance, repairs, advertising, cleaning, etc.) to this type also includelogistics outsourcing.
One of the factors that contribute to the development of these services is the availability of highly effective modern communication media (transport, computerization and communication).This ensures the secure and rapid exchange of information, material and financial flows, along with the high level of specialization of enterprises in the service sector and manufacturing.
most important argument in favor of outsourcing cost savings, as well as a guarantee of high quality and reliability of services provided.This is due to the fact that the contractor usually has a narrow specialization and focuses the best professionals, using the most advanced equipment, high technologies, collects service experience working with various clients.
Knowing that such outsourcing, many companies are turning it to such organizations.After all, this kind of specialist, serving many customers, optimizes services and economy distributes its overhead costs, and it reduces the prices for services and at the same time improve their quality.With this in mind, customers buying services, it does not bear the costs associated with the maintenance of complex equipment and specialized skilled personnel.
Turning to the contractor, and knowing that such outsourcing, the client company can reduce development costs, because it is possible to purchase services at reasonable prices, without incurring additional costs.Signing the contract of outsourcing, the customer has the right to obtain the necessary services performed on a professional high level, providing for themselves guarantee the liability of the contractor for the quality of execution.This is possible because the outsourcing firm is a legal entity and has certain assets that can be claimed for damages.In addition, this activity is insured, and outsourcer shares its responsibility with the insurance company.
