Many companies choose to outsource these days with the end-result-in-mind of saving time and money. Most of the commonly outsourced areas are:
- Information Technology Functions
- Network and Telecommunications
- Human Resources and Insurance Administration
However, besides saving time and money, companies and business owners nowadays resort to outsourcing due to the following reasons as well:
Attend to shortage of highly specialized personnel: Some companies, especially those belonging to the small and medium sized categories, find it too expensive to employ personnel who can handle highly specialized functions such as engineers, financial directors, legal advisers, and IT specialists. To include these people in their permanent payroll will offset considerably the company’s overhead expenses. Besides the high basic pays these positions require, their fringe benefits are raised accordingly to meet the market standard on these professions like the life pensions and separation pays.
Meet seasonal requirements: The needs for additional manpower in some positions are seasonal such as additional sales force during the holiday seasons or the launching of new products. Additional accountants may also be needed during taxation periods. More hands may be needed in the production department to meet occasional higher volume of orders or to catch up with deadlines.
Focus on the company’s core business: This happens especially with emerging businesses when operations details, although important, eat up too much of company’s time. Tasks such as data entry, taking phone orders, invoicing, regular correspondence, and updating of websites can be outsourced thus freeing management’s time and that of in-house employees to attend to the company’s core business.
Take care of health and safety concerns: Other important areas to consider in outsourcing are those of health and safety. Health personnel such a company physician and a paramedic can be outsourced to attend to medical emergencies. There should also be security personnel on round-the-clock assignment to look after the safety and security of the employees and the premises.
The above-mentioned reasons in must also be given important consideration in outsourcing addition the usual reasons of time and cost managements.