Meaning of Outsourcing

What is Outsourcing:

Outsourcing is a term from the English we can translate to the Spanish as ‘contract’, ‘outsourcing’ or ‘outsourcing’. In the business world, means the process whereby an organization hires other outside companies to take charge of part of its activity or production.

The word, as such, is an anglicism which is composed with the voices out, which means ‘out’, and source, which translates ‘source’ or ‘origin’, i.e. external source.

In this sense, the outsourcing is closely related to the outsourcing of services, because it involves the search for an external source to the company that can provide efficiently certain services, so that it can have more time to focus on the key aspects of your business.

Many companies subcontract in the area of information technology, human resources, accounting and administration of assets and real estate. Others also do it in the technical support to the user and phone calls, manufacturing and engineering management.

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However, outsourcing is a practice that should be well tested before application in a company, since it can have effects both positive or negative.

Advantages and disadvantages of outsourcing

Outsourcing, depending on the type of business and its implementation, may present various advantages and disadvantages that need to be analyzed when considering the impact that might have on the company.

Advantages

Between the benefits that outsourcing for companies, we can mention the following:

It allows to reduce costs of manufacture and equipment. Place more human resources and technology available to the company. It gives the opportunity to the company to respond and adapt quickly to changes in the business. It allows the company to focus on the key areas of your business. It allows the company to be more competitive.

Disadvantages

While, moreover, some of the disadvantages which may present for a business outsourcing are the following:

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Outsourcing costs may end up being higher than expected. Change of provider can be economically and productively negative. There is the possibility of losing control over the production. The contracting company can see their work copied and its disadvantaged business. You can contribute to the exploitation and dehumanization of the worker. In offshore outsourcing (outsourcing services to a company in another country, in order to find more cheap labor), there is a greater likelihood of layoffs of workers.

Outsourcing or outsourcing?

Although the terms outsourcing and outsourcing are used interchangeably, in many cases outsourcing reveals the assignment of a work to a company outside the country of origin of the contracting company, while outsourcing reveals contacts and transactions within the country itself.

Outsourcing of printing

The outsourcing of printing is a type of contract requested by businesses that require services of printing of documents and other materials constantly. In this way, the original company does not have to worry about prints and copies, since the contracted company is the way to improve quality and reduce costs in this area. Thus, these companies are responsible for the management of printing equipments, being also responsible for technical assistance and the supply of inputs.

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