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Outsourcing. Why not and… Yes?

Homiletics professor Halford E. Luccock once said, “No one can play a symphony alone. It takes an orchestra.” Which musicians should be accepted into the main cast, and which should be involved as session musicians? About employees on outsourcing: expediency, the range of tasks performed and tips for finding competent specialists today in our article.

Outsourcing. Is the new the well-forgotten old?

Let’s consider the topic of outsourcing not just on the example of an advertising or HR agency, a law firm or an IT company, but let’s plunge into the history of human development. It turns out that in ancient times, outsourcing services were very popular! Don’t believe me? See for yourself!

Recall, for example, the film “Truffaldino of Bergamo”, in which the tireless Truffaldino manages to deftly serve two gentlemen living in different hotel rooms at the same time. Moreover, he was able to solve his family problems, finding himself a beautiful bride in the process of fulfilling errands.

Or take for example another movie, Dog in the Manger. The cunning and witty servant of the Secretary of countess Teodoro is Tristan, who was able to create from the poor and rootless Teodoro a noble nobleman of blue blood, worthy of marrying Countess Diana de Belfleur.

Well, why not outsourcing, you say? And you’d be right. Both then and now, when performing complex numerous tasks, professional help is indispensable.

Outsourcing as a business strategy

Building business processes with the involvement of outsourcing contractors is a stable and growing trend in modern companies. If, traditionally, third-party contractors were entrusted with processes that had the character of accompanying ones: security, logistics, catering. After the economic crisis of 2008, the interest of employers shifted towards valuable human resources: financiers, PR specialists, HR specialists, IT specialists and digital marketers.

Reasons why employers prefer outsourced specialists:

  1. The lack of competence of the manager in a particular area does not allow you to independently establish and control certain processes. And that’s okay.
  2. To understand the principles of Online advertising, to own the norms of the current legislation does not mean to spend time setting up the algorithm for issuing the site and drawing up contracts. Even if you are a brilliant multi-instrumentalist, remain the conductor of the orchestra. As Brian Tracy said, “A leader’s most valuable tool is the ability to think more clearly than others.”
  3. Working with high-level third-party experts gives your business a competitive advantage. A compromise is built on the terms of outsourcing, and the principle of “price-quality” is clearly implemented. No matter how hard you try to attract a “star” for wages, often, this is an impermissible luxury for the company.
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From the point of view of cost, outsourcing is justified if it costs 15-20% cheaper than the remuneration of a full-time employee. When the need for a specialist is obvious, a simple arithmetic begins to calculate the start-up and monthly costs. For a new employee in the company, it is necessary to take into account the costs of renting a room and equipping a workplace, installing software. Add the cost of taxing wages, vacation pay, sick leave.

From theory to practice

Gain a competitive advantage through “third-party intelligence” and save costs – what could be more profitable? Then why haven’t you contracted with third-party contractors yet?

Let’s be honest, the most important factor is you! If the manager manages the company manually, there can be no question of transferring functions to outsourcing. If you want to develop, put business processes in order, conduct an inventory of the competencies and responsibilities of your employees. Calculate costs, weigh risks and opportunities, and make a pragmatic business decision.

An agreed agreement with clear mutual obligations and a reporting plan will act as a guarantor!

Another deterrent is also subjective. For example, you started a business relying on people who were “proven.” And for five years now, your mother’s great-niece, a decent girl in every way, is your accountant. The only point: the courses of personal growth and spiritual development interest her much more than specialized seminars on the topic of optimization of taxation and illegal actions of fiscal authorities.

The dedication of “their people” or their professional competence? It’s up to you!

Examples of outsourcing

Have you ever thought that the questions on the bank’s hotline are answered not by a “banker”. Banks use call-center services on outsourcing. For example, Datagroup offers a comprehensive call center organization on a turnkey basis.

Specially trained personnel will promptly respond and analyze incoming requests. On the technical side, your contractor is also provided with everything you need. Thus, you can quickly launch a line of customer service, promotion or market research.

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The next example is production outsourcing. We all travel by Intercity+ trains and are familiar with the offers of the dining car. The sale of drinks and snacks there is carried out by WOG CAFE. For the latter, on the terms of outsourcing, the production of sandwiches, desserts, salads is carried out by enterprises in Zaporozhye, and fresh sandwiches – in Boryspil.

Products are subjected to deep freezing. Services for the transportation and storage of products in frozen form are provided by the Ukrainian-Lithuanian company “Ukrlogistika”. Also partners in dry logistics is the company UVK. The famous buns for hot dogs are produced in Lithuania, sausages are produced at the Tulchinmäso plant, and sauces are supplied by TM Torchin. And all for the sake of our comfortable and well-fed journey in the trains “Intercity +”.

Outsourcing VS Staff

Obviously, both full-time employees and outsourced specialists were, are and will have a place in the organizational structure of enterprises. How to make a choice in favor of this other form of cooperation? Consider the example of bookkeeping.

Cost. From the point of view of costs, outsourcing is justified if it costs 15-20% cheaper than the remuneration of a full-time employee.

Efficiency. Do the specifics of your activity require a lightning-fast reaction of an accountant? Will the technologies of online conferencing and communication in group chats of CRM-programs provide a solution to issues? If not, delegate the functions to a full-time employee.

Responsibility. An outsourced accounting agreement implies material liability for errors in accounting operations. What liability is provided for a full-time accountant in the employment contract of your company?

The human factor. An employee “on a salary” enjoys social protection. Being on sick leave, he has the legal right not to interrupt the treatment of SARS by the need to post a batch of goods or conduct an inventory of warehouse balances. At the same time, even an individual freelance accountant rarely allows himself to risk customer loyalty. If you use the services of an outsourcing company, then the human factor is completely excluded.

Competence. It’s no secret that a third-party specialist often leads several clients. Professional outlook, connections and experience in different industries helps him to quickly and efficiently find a solution in non-standard situations.

Responsibilities. An outsourced accountant performs the tasks prescribed in the contract. A full-time employee can be loaded with the solution of “freelance” tasks.
For reference, 92% of small and medium-sized businesses outsource accounting in the United States and 86% of companies in Western Europe.

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Tips for aspiring reformers

If the decision to transfer individual business processes into the hands of third-party specialists is made, we will consider the recommendations for switching to outsourcing on the example of legal services.

Start choosing a counterparty for outsourcing with one-time consultations. Pay attention to the attitude, efficiency, attention to detail.

Find out what kind of issues a lawyer or law firm specializes in? Ask for recommendations and customer reviews.

When discussing the cost of subscription services, list the most frequently asked questions. Preparation and coordination of contracts of economic activity, support of labor disputes, contracts with foreign partners, as a rule, belong to the main ones. The visit of a lawyer to the court, the compilation of reviews in the list of standard operations are not included and are evaluated separately.

Conclude the first trial contract for 2-3 months. At the end of the term, discuss the situation with the scope and specifics of the work. This will give an understanding to both parties and will allow you to adjust the price for further service.

By the way, the database of accountants, auditors, lawyers, recruiters, specialists in the field of IT and digital marketing, ready to start performing the task on the terms of outsourcing, is already on the website of the freelancehunt.com. Each applicant has a rating. Feedback from employers and a portfolio of work performed will speed up your choice.

It turns out that everything is not so complicated?

Yes, the outsourcing process is not a 21st century technology. The opportunity to attract specialists to develop your own business or solve problems was available at all times. And only now, with the development of communications and general globalization, we are able to hire a remote employee at least from the other side of our planet. Agree – an amazing time of unlimited possibilities!

At the end of the article, I would like to return to the musical beginning of the article and metaphorically note: no matter how perfect the synthesizer reaches in reproducing the sound of instruments, recording electronic music in the studio is one thing, and a symphony orchestra concert in the Philharmonic Hall is another!

Good luck with your business and inspiration!

Shubham

Written by Shubham

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